- USDC market cap jumps to its highest level in 2024.
- A recap of how USDC got to where it is and its distribution across leading blockchains.
As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market fluctuations and trends. The surge in USDC’s market cap this year is a testament to the resilience and adaptability of stablecoins in the ever-evolving cryptocurrency landscape.
This month, the USDC stablecoin has experienced a boost due to renewed interest in the cryptocurrency sector. This increase is noticeable in its record-high market capitalization levels.
Here’s a look at how the stablecoin has been faring.
In the past week, as per CoinMarketCap’s data, USDC saw a significant increase of approximately $2.34 billion in its market capitalization. This surge propelled USDC beyond its previous highs from September, making its recent growth the highest it has been so far in 2024.
Although USDC reached a new 2024 high, it was still below its previous all-time high of $55.82 billion.
This all-time high (ATH) was reached during the peak of the 2022 bear market, when investors sought refuge in the stability provided by stablecoins amidst market volatility.
Could it be that the increase in the USDC market capitalization is being driven primarily by a recent spike in interest towards cryptocurrencies?
In simpler terms, this implies an increased interest in stablecoins, which can potentially funnel funds into Bitcoin (BTC) and other alternative cryptocurrencies.
Beyond an increase in liquidity requirements, there might also be a surge in the need for USDC because of yield farming. Certain DeFi (Decentralized Finance) platforms provide incentives, such as rewards, for keeping USDC and other stablecoins within their platforms.
USDC distribution across multiple networks
Approximately 67.69% of all USDC (US Dollar Coin) in circulation, amounting to around $25.09 billion, resides within the Ethereum ecosystem. Notably, the Base network, one of the fastest expanding blockchain networks in 2024, is also a significant part of this dynamic environment.
It had the second-highest supply at 3.332 billion USDC or 8.99% of its supply.
Solana secured third place with 2.806 billion USDC, or an equivalent of 7.57% of its total supply.
So far, the USDC stablecoin has consistently held the second-largest position among dominant stablecoins worldwide, following closely behind USDT as the top leader.
As of the 9th of November, USDC held approximately 20.83% of the overall stablecoin market capitalization. However, it still had a significant gap to fill relative to its larger counterpart, USDT, which accounted for a dominating 69.17%.
Essentially, USDC still needs significant growth to compete for leadership in the stablecoin market.
Over the coming months, it’s likely that USD Coin (USDC) will see further expansion. This growth could be particularly pronounced if the cryptocurrency market as a whole begins to show increased activity and excitement.
This is because stablecoin demand tends to grow during bullish periods.
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2024-11-10 13:11