The market capitalization of Circle’s USD Coin (USDC) has climbed an impressive 80% from its 2023 lows, reflecting a resurgence in on-chain activity and growing adoption across multiple blockchain networks. According to Blockworks Research, USDC’s circulating supply now nears $44 billion, nearly doubling from its previous low of under $24 billion, as of January 2, 2025.
Expanding Beyond Ethereum
USDC’s distribution across blockchain networks has diversified significantly. Currently, approximately 65% of USDC resides on Ethereum, down from 85% in 2023. Other networks are gaining traction: 10% of USDC is on Solana, while the remaining 15% is spread across Base, Arbitrum (Ethereum layer-2 solutions), and Hyperliquid, a low-latency layer-1 network.
The shift is partly driven by retail traders flocking to Solana amid speculation on memecoins and AI agent tokens. Solana’s total value locked (TVL) surged from $1.5 billion in January 2024 to nearly $8.5 billion by December, according to DefiLlama.
Grayscale noted in a recent report that Solana has become an attractive entry point for new crypto users, contributing to the broader diversification of USDC across blockchains.
Stablecoins and DeFi Growth
Stablecoins are increasingly recognized as essential on-ramps to decentralized finance (DeFi). USDC’s rising market capitalization aligns with an industry-wide surge in stablecoin adoption. Citi Research highlighted that the combined market caps of the top three stablecoins, including USDC, grew by more than $25 billion following Donald Trump’s re-election in the U.S.
Cryptocurrency researcher Steno Research predicts USDC’s supply could more than double in 2025, potentially reaching $100 billion. This growth is expected to accelerate if Tether (USDT), the current market leader, faces regulatory challenges in the European Union.
Implications for 2025 and Beyond
The broader adoption of USDC could fuel a new wave of DeFi innovation. As Grayscale expands its watchlist of top tokens to include Solana-based applications like Ethena, Jupiter, and Jito, decentralized platforms are poised to benefit from increased stablecoin liquidity.
Analysts view the expanding USDC supply and blockchain distribution as a positive signal for both institutional and retail crypto adoption, underscoring the growing role of stablecoins in global finance.
