USD Coin (USDC) surpassed $20 trillion in cumulative transaction volume in 2024, according to a report published by Circle. In November 2024 alone, USDC recorded $1 trillion in monthly transaction volume.
The report highlighted USDC’s role as a digital representation of the US dollar integrated into various blockchains. Moreover, USDC circulation grew 78% year-over-year.
The publication also advocated stablecoin’s advantages over fiat money, such as cost efficiency, near-instant transaction speeds, and global reach.
Jeremy Allaire, co-founder and CEO of Circle, stated:
“Businesses large and small are building innovative products and services with USDC and Circle’s technology, fueling mainstream adoption that will lead to a faster, stronger, and more resilient internet-based financial system.”
The report attributed USDC’s growth to different use cases, such as cross-border payments and the usage of DeFi protocol.
Additionally, it highlighted that over $850 billion had been brided from traditional finance to the decentralized economy since the USDC launch.
According to data from Artemis, the USDC market cap increased by 61% in 2024, closing December totaling nearly $39 billion. The transfer volume also soared from $22.7 billion to $77.5 billion in the same year, a 241% growth.
Main drivers
The report related the increasing use of different applications to significant developments, the first of which is regulatory advancements. As stablecoin regulations mature, these assets benefit from bolstered confidence, ramping up transaction volumes.
Advancements in blockchain technology are also another key development bolstering USDC growth. The report cited the integration of third-generation blockchains as enablers for cheap and fast transactions, enhancing accessibility to stablecoins.
The third driver, as the report points out, is the creation of new products in different areas where stablecoins can be used, from remittances and payroll solutions to humanitarian aid and e-commerce.
Popular in emerging economies
Circle advocated that the USDC’s appeal encompasses emerging economies, particularly Latin America and Africa. Countries in these regions have embraced USDC as a hedge against inflation and a means to access global financial networks.
Partnerships with fintech companies such as Nubank and Chipper Cash have further expanded its reach.
Furthermore, integration in venues like the Apple Store significantly boosts USDC adoption. All these partnerships make USDC available to over 500 million end-user wallets.
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