USD Coin (USDC), a popular stablecoin in the crypto industry, has had an 80% increase in market value since its lows in 2023. Stablecoins are becoming increasingly popular as blockchain activity intensifies, as evidenced by their current valuation of $44 billion.
USDC’s participation on numerous blockchain networks has been a significant driver of this expansion. While Ethereum still accounts for 65% of USDC supply, other networks such as Solana and Hyperliquid are gaining popularity. Solana, in particular, has emerged as a retail trading hotspot, owing to the popularity of its memecoins and decentralized finance (DeFi) projects.
This shift in blockchain preference mirrors broader developments in the crypto sector. In 2023, Ethereum owned 85% of USDC supply, while currently, Solana holds 10%, and Ethereum layer-2 networks like Base and Arbitrum, as well as Hyperliquid, hold roughly 15%.
Regulatory changes also contribute to the increasing demand for USDC. The European Union’s crypto laws have caused doubt over Tether’s availability, leading to a shift toward USDC as a favored stablecoin. Analysts expect that USDC’s market capitalization will treble by 2025, possibly reaching $100 billion.
This increase in stablecoin popularity is encouraging for the DeFi industry, since stablecoins serve as a crucial gateway for users. USDC’s position as a leading stablecoin in the developing crypto world is further strengthening as networks diversify and regulatory clarity improves.
