Circle’s Stablecoin Sees Strong Growth Amid Expanding Blockchain Reach
Circle’s USD Coin (USDC) has reached a market capitalization of $56.3 billion as of 10 February, according to CoinGecko data. The surge marks a complete recovery from losses sustained during the most recent bear market, reflecting renewed investor confidence in the stablecoin sector.
The latest figure represents a 23.4% increase from the $45.6 billion recorded on 8 January. During the depths of the bear market in November 2023, USDC’s market cap had plunged to $24.1 billion.
Circle Expands Blockchain Presence
A key driver behind USDC’s recent growth is Circle’s expansion to multiple blockchain ecosystems. The company has extended its reach to networks such as Sui and Aptos, further integrating USDC into the evolving digital asset landscape.
Additionally, in January 2025, Circle minted $6 billion worth of USDC on the Solana blockchain, signalling strong demand and growing adoption across decentralised finance (DeFi) platforms.
Tether Remains Market Leader
Despite USDC’s rapid rise, Tether’s USDT remains the world’s largest stablecoin by market capitalisation. As of 10 February, USDT boasts a market cap of $141.6 billion, having increased by over $4 billion in the past 30 days.
Data from DefiLlama indicates that USDT still commands 63% of the stablecoin market, though USDC has gained ground. Over the past year, USDC’s market share has risen from 19.4% to 25%, reflecting its increasing role in the sector.
Stablecoins at the Centre of US Policy Debates
Stablecoin regulation has become a focal point in US political discussions, particularly following the inauguration of President Donald Trump’s administration.
Total USDC in circulation over time. Source: DefiLlama
White House AI and crypto advisor David Sacks has emphasised that stablecoins could enhance the US dollar’s dominance in global and digital markets. He stated that the administration aims to foster innovation in the stablecoin sector by bringing its development onshore.
Meanwhile, Senator Bill Hagerty has introduced new legislation aimed at establishing a “safe and pro-growth regulatory framework” for stablecoins, which could pave the way for greater institutional adoption and regulatory clarity.
The Growing Role of Stablecoins in Global Finance
Stablecoins, which are digital assets pegged to fiat currencies such as the US dollar, play a vital role in digital payments and financial systems worldwide. In many developing economies, they serve as a hedge against inflation, offering a stable alternative to volatile local currencies.
Beyond stability, stablecoin holders can earn yields on decentralized finance protocols, mirroring the concept of earning interest on traditional bank deposits.
Since August 2023, the total stablecoin market cap has grown significantly, rising from $121 billion to $224 billion by 10 February. This rapid expansion underscores the increasing reliance on stablecoins within the broader cryptocurrency ecosystem and their potential to reshape global financial markets.
