Circle’s 2024 USDC Economy Report Reveals Significant Growth in Stablecoin Adoption

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Circle, a leading financial technology firm, recently published its State of the USDC 2024 report, marking an important milestone in the evolution of digital currencies. The report, titled “Welcome to the Age of Open Money”, provides a comprehensive overview of USDC, a regulated stablecoin, performance and adoption trends, particularly in the context of the global regulatory environment for payment stablecoins.

The report highlights the remarkable growth of USDC in the financial ecosystem. One notable statistic is the 59% increase in the number of USDC wallets with a balance of at least $10, reaching around 2.7 million in the past year. This growth is indicative of the growing adoption and use of stablecoins in the broader financial landscape.

Since its introduction in 2018, USDC has been instrumental in settling over $12 trillion in blockchain transactions. In 2023 alone, Circle facilitated over $197 billion in transfers between the banking system and blockchain networks through mining and redemption. Additionally, USDC was part of 595 million transactions from January to November 2023.

Circle’s Cross-Chain Transfer Protocol (CCTP), a significant technological advance, further improved the usability of USDC. CCTP, launched in April 2023, has already facilitated 66,500 transactions. This protocol reduces friction, increases safety and security, and reduces costs when sending USDC across different blockchains.

The report also highlights the efficiency and profitability of the USDC. Even on Ethereumknown for its high gas fees, the average cost per USDC transaction was less than 1% of the transaction in 2023. On other networks, such as Solana, it was even less than a tenth of a percent.

Jeremy Aller, Co-Founder and CEO of Circle, reflects on USDC’s transformative impact in improving financial inclusion and access. He noted that while the journey is still in its infancy, the 2024 report shows growing momentum. Allaire highlights the emerging regulatory clarity on stablecoins and the adoption of this technology by mainstream financial institutions, fintech companies, internet firms and enterprises, positioning the USDC to play a central role in the new internet financial system.

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The report also sheds light on the USDC’s role in streamlining global finance, disrupting remittances, cross-border payments, disbursement of aid and charitable donations, and providing a stable store of value to counter high inflationary effects. This is supported by case studies with major financial service providers and technology leaders including Visa, MoneyGram, Grab, Nubank, Stripe, Worldpay by FIS and others.

In the broader context of decentralized finance (DeFi), USDC remains dominant. Despite challenges such as the collapse of a key banking partner, USDC has maintained its position as a crucial stablecoin in the DeFi ecosystem. This resilience highlights the strength of the stablecoin and the trust it has earned in the market.

However, this is not all positive news. The report acknowledges the challenges facing the USDC, particularly in terms of market capitalization. Having peaked at $56 billion in June 2022, USDC’s market cap has seen a significant decline, falling to just over $24 billion in mid-November 2023, a nearly 60% decrease. However, the stablecoin has seen a rebound in recent months, adding more than $1 billion to its market cap and ranking seventh among all digital assets.

The USDC State of the Economy 2024 report is a testament to the growing importance of stablecoins in the financial world. It highlights Circle’s commitment to fostering an inclusive, fair and promising future, paving the way for a more accessible and efficient financial system.

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