USD Coin (USDC) surpassed $20 trillion in cumulative transaction volume by 2024, according to a report published by Circle. In November 2024 alone, USDC recorded a monthly transaction volume of $1 trillion.
The report highlighted USDC’s role as a digital representation of the US dollar, integrated into various blockchains. Furthermore, USDC circulation grew by 78% year-on-year.
The publication also advocated the advantages of stablecoins over fiat money, such as cost-efficiency, near-instantaneous 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 technology, driving mainstream adoption that will lead to a faster, stronger and more resilient internet-based financial system.”
The report attributes USDC’s growth to various use cases, such as cross-border payments and the use of the DeFi protocol.
Furthermore, it highlighted that more than $850 billion has been transferred from the traditional financial sector to the decentralized economy since the launch of the USDC.
According to facts from Artemis, USDC’s market capitalization has increased by 61% in 2024, bringing the total to almost $39 billion in December. Transfer volume also increased from $22.7 billion to $77.5 billion in the same year, a growth of 241%.
Main drivers
The report linked the increasing use of different applications to key developments, the first of which is regulatory progress. As stablecoin regulations mature, these assets will benefit from strengthened trust, increasing transaction volumes.
Advances in blockchain technology are also another major development driving USDC growth. The report cited the integration of third-generation blockchains as means for cheap and fast transactions, improving the accessibility of stablecoins.
The third driver, as the report notes, is the creation of new products in various areas where stablecoins can be used, from money transfers and payroll solutions to humanitarian aid and e-commerce.
Popular in emerging economies
Circle argued that the USDC’s appeal includes emerging economies, particularly Latin America and Africa. Countries in these regions have embraced USDC as a hedge against inflation and as a means of accessing global financial networks.
Partnerships with fintech companies such as Nubank and Chipper Cash have further expanded its reach.
Additionally, integration into locations such as the Apple Store significantly increases USDC adoption. All of these partnerships make USDC available to more than 500 million end-user wallets.
