USDC crosses $16 trillion in volume, driven by Solana’s market share
Aug. 30, 2024, 12:50 p.m.
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Circle’s USD Coin ( USDC ) stablecoin has crossed the $16 trillion mark in total cumulative volume.
Although this figure falls short of traditional financial powerhouses like Visa, which processed over $12 trillion in payments just last year, it highlights the remarkable growth of stablecoins. Despite their relatively short history, stablecoins have quickly become major players in the global financial market.
Stablecoins play a crucial role in the crypto ecosystem. They facilitate the smooth transfer of funds, support seamless trading between tokens, and enable payments, particularly for cross-border transactions.
Launched in 2018, USDC is the second-largest stablecoin by market capitalization, with $34.6 billion currently in circulation. Circle has strategically positioned USDC as a more regulation-compliant stablecoin , setting it apart from competitors like USDT.
This strategy has contributed to USDC’s dominance in transactions this year, surpassing Tether’s USDT despite having a smaller circulating supply. According to Artemis, USDC now accounts for roughly 50% of the total stablecoin transaction volume.
Solana fuelling USDC’s growth
USDC’s transaction volume is primarily driven by the Solana blockchain, which controls more than three-quarters of the stablecoin market share . Data from DeFiLlama shows that USDC comprises about 65% of Solana’s $3.98 billion stablecoin supply.
A stablecoin dashboard created by Visa Inc., in partnership with Allium Labs, reveals that USDC’s transaction volume on Solana has surged to approximately $8.29 trillion since the start of last year. Its closest competitor, USDT on TRON , recorded a volume of $7 trillion during the same period.
This growth is not unexpected, considering Solana’s appeal for its speed and lower transaction fees, which have attracted attention from conventional financial institutions like PayPal .
The recent surge in memecoin trading and DeFi activities on Solana has further boosted its prominence. In recent months, the market has even witnessed instances where trading activity on Solana outpaced Ethereum’s.
