Circle’s USDC Market Cap Hits All-Time High
Date: 2025-02-14 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Circle has seen its USD Coin (USDC) stablecoin market cap hit a new all-time high, surpassing $56 billion. This is higher than its previous peak in 2022, reflecting a general surge in interest in stable digital assets.
According to The Block, USDC’s $10 billion increase in supply in recent months has outpaced Tether’s USDT, which has added $4.2 billion. This trend highlights the recovery and expansion of the stablecoin sector after a long period of relative calm.
The resurgence in demand for stablecoins has coincided with increased activity in the crypto market, where investors are adapting to macroeconomic challenges. The increase in USDC’s market cap indicates its demand as a liquid asset on cryptocurrency platforms.
The decentralized finance (DeFi) sector, especially on the Solana blockchain, is the main contributor to USDC growth. Last month, USDC supply increased by $10.2 billion, more than double the increase of USDT. Despite this, Tether remains the largest stablecoin with a total market cap of $142 billion.
The current success of USDC confirms its full recovery from the 2023 crisis, when it temporarily lost its peg to the US dollar. At that time, Circle announced that part of the reserves were placed in Silicon Valley Bank, which faced a massive outflow of funds. This led to a temporary decrease in confidence in USDC, but in the following months, the stablecoin regained its lost ground.
Both USDC and USDT remain key instruments in the cryptocurrency market, providing liquidity and stability. Their capitalization reflects the level of demand from investors and the general state of the digital economy.
