Circle’s USDC Outpaces Tether in 2024 Market Cap Growth, Signaling Intensified Stablecoin Competition

Stablecoin issuer Circle reported a strong rebound for its USD Coin (USDC) in 2024, outpacing rival Tether’s (USDT) market capitalization growth and highlighting an intensifying race for leadership in the digital dollar space. 

According to Circle’s third annual “State of the USDC Economy Report,” USDC’s circulating supply grew by 78% year-over-year in 2024, a notable comeback after the token’s market cap plunged by nearly 45% in 2023. That fall was linked to the collapse of Silicon Valley Bank, which caused a temporary depeg from the U.S. dollar and a subsequent massive sell-off.

The report details how USDC rose from around USD 24.4 billion at the start of 2024 to USD 43.9 billion by year-end, marking a 79% overall jump. Despite this rapid rise, the stablecoin’s market capitalization remains approximately 22% below its all-time high of USD 55.9 billion reached in June 2022. Circle attributes its 2024 momentum to the maturing regulatory clarity across major markets, the scalability of blockchain infrastructure, and a relentless focus on trust, transparency, and utility.

Largest Stablecoin by Market Value

Comparatively, while Tether remains the largest stablecoin by total market value, its 2024 growth rate of around 50%—from USD 91.7 billion at the end of 2023 to USD 137.5 billion—was more modest than that of USDC. Tether’s market cap surge reflects a continuation of its longstanding growth trajectory rather than a recovery from a recent setback. Over the longer term, Tether has experienced a 552% increase in market value since late 2020, whereas USDC has seen a remarkable 1,135% climb in the same period. However, USDC’s sharp rally this year contrasts with Tether’s steadier expansion, underscoring a shift in momentum within the stablecoin sector.

Circle emphasized that regulatory clarity played a critical role in USDC’s recent expansion. By July 2024, the firm had become the first MiCA-licensed stablecoin issuer in the European Union, a milestone that came as part of a broader global effort to comply with evolving regulations. The company also focused on regional compliance in jurisdictions such as the United Kingdom, Brazil, Singapore, and Japan, areas where clear regulatory frameworks are expected to spur continued growth in 2025.

Circle’s spokesperson highlighted the growing adoption of USDC in regions with high remittance activity, including Latin America, Africa, and Southeast Asia, where the digital dollar offers a faster and less costly alternative to traditional payment systems.

The number of wallets holding USDC is at record levels. Source: Circle

In addition to regulatory milestones, Circle noted that partnerships with organizations like MoneyGram and Chipper Cash have helped drive adoption among the unbanked and underbanked, offering seamless conversions between USDC and local currencies across more than 180 countries. The report also underlined USDC’s substantial on-chain activity, citing that monthly transaction volume surpassed USD 1 trillion for the first time in November 2024, with total all-time transactions exceeding USD 20 trillion. The stablecoin’s infrastructure support extends across 16 blockchains, and Circle’s Cross-Chain Transfer Protocol has processed over USD 20 billion in transactions, facilitating transfers across multiple blockchain networks.

Tether, which has not been as proactive in obtaining licensing or regulatory compliance in some key markets, continues to rely on its large market share. However, Circle’s strategic emphasis on compliance and transparency has enabled it to bridge over USD 850 billion between fiat currencies, supported by a global network of banking partners in the U.S., Brazil, Mexico, the European Economic Area, Singapore, and Hong Kong. These partnerships assist not only in fostering trust but also in providing critical off- and on-ramp capabilities that support business-to-business payments and cross-border transactions.