The post USDC Gains Momentum as Blockchain Adoption Diversifies appeared on BitcoinEthereumNews.com.

In contrast to USDC’s growth, Tether faced regulatory scrutiny under Europe’s MiCA framework, which caused market cap fluctuations and debates over decentralization and financial censorship. Meanwhile, the Frax community integrated BlackRock’s BUIDL fund as collateral for its frxUSD stablecoin. On-chain Trends Point to Record Growth for USDC in 2025 The circulating supply of USD Coin (USDC), Circle’s United States dollar-backed stablecoin, experienced impressive supply growth by rising 80% from its 2023 lows thanks to an increase in on-chain activity. According to data from Blockworks Research, USDC’s circulating supply is nearing $44 billion, which is nearly double the low of under $24 billion that was recorded last year. Analysts suggest that this surge reflects heightened blockchain adoption and the diversification of USDC holdings across various networks. Previously concentrated on Ethereum, which accounted for 85% of the stablecoin’s supply in 2023, USDC’s distribution has become much more balanced. Currently, around 65% of USDC is held on Ethereum, while 10% resides on Solana, and 15% is spread across Ethereum layer-2 networks like Base and Arbitrum, as well as Hyperliquid. This shift proves that there is growing traction on alternative layer-1 platforms like Solana, whose total value locked surged from $1.5 billion in January of 2023 to $8.5 billion by December, according to DeFiLlama. This diversification aligns with trends like retail traders entering the crypto market through Solana due to the speculation around Solana-based meme coins and AI tokens. Grayscale shared in a December research report that this movement contributed to the stablecoin’s broader adoption and on-chain growth. Furthermore, stablecoins played a crucial role in boosting the decentralized finance (DeFi) sector by acting as key on-ramps for users exploring blockchain-based financial solutions. The stablecoin market as a whole has also seen some major growth, with the combined market capitalizations of the top three stablecoins,…

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Filed under: News - @ January 3, 2025 6:27 am