According to a study, the cumulative trading volume of USD Coin (USDC) will exceed $20 trillion in 2024. report Published by Circle. In November 2024 alone, USDC’s monthly trading volume hit $1 trillion.
The report highlighted the role of USDC as a digital representation of the US dollar integrated into various blockchains. Additionally, USDC’s circulation increased 78% year-over-year.
The publication also asserted the advantages of stablecoins over fiat currencies, including cost efficiency, near-instantaneous transaction speeds, and global reach.
Jeremy Allaire, co-founder and CEO of Circle, said:
“Companies large and small are using USDC and Circle technology to build innovative products and services that will lead to a faster, stronger, and more resilient internet-based financial system in the mainstream. We are promoting the adoption of
The report attributes USDC’s growth to a variety of use cases, including cross-border payments and the use of DeFi protocols.
He also highlighted that more than $850 billion has flowed from traditional finance into the decentralized economy since the launch of USDC.
According to data The acquisition from Artemis boosted USDC’s market capitalization by 61% in 2024, to a total of approximately $39 billion at the end of December. In the same year, remittances also jumped from $22.7 billion to $77.5 billion, an increase of 241%.
Key drivers
This report associates the increased use of various applications with important developments, the first of which is regulatory advances. As stablecoin regulation matures, these assets will benefit from increased trust and trading volumes will increase.
Advances in blockchain technology are another important development driving USDC’s growth. The report cites the integration of third-generation blockchains as enabling cheaper and faster transactions and enhancing access to stablecoins.
As the report points out, the third driver is the creation of new products in a variety of sectors where stablecoins can be used, from remittances and payroll solutions to humanitarian aid and e-commerce.
Popular in emerging countries
Mr Circle argued that USDC’s appeal encompasses emerging economies, particularly Latin America and Africa. Countries in these regions have adopted USDC as a hedge against inflation and as a means of accessing global financial networks.
Partnerships with fintech companies such as Nubank and Chipper Cash further expanded its reach.
Additionally, integration in places like the Apple Store will greatly accelerate USDC adoption. All these partnerships will make USDC available to over 500 million end-user wallets.
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