USDC crosses $16 trillion in volume, driven by Solana’s market share News ▸ Solana · USDC ▸ Stablecoins
USDC crosses $16 trillion in volume, driven by Solana’s market share
USDC is the second-largest stablecoin by market cap and now accounts for a significant volume of stablecoin's overall volume.
2 min read
Updated: Aug. 30, 2024 at 1:50 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Circle’s USD Coin (USDC) stablecoin has crossed the $16 trillion mark in total cumulative volume.
While this number 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 existence, stablecoins have quickly established themselves as key players in the global financial market.
Stablecoins play an essential role in the crypto ecosystem. They facilitate the smooth transfer of funds, support seamless trading between tokens, and enable payments, especially 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 regulatory-compliant stablecoin, differentiating it from competitors like USDT.
This approach 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 holds more than three-quarters of the stablecoin market share. Data from DeFiLlama indicates that USDC makes up about 65% of Solana’s $3.98 billion stablecoin supply.
A stablecoin dashboard created by Visa Inc., in collaboration with Allium Labs, shows that USDC’s transaction volume on Solana has soared to approximately $8.29 trillion since the beginning of last year. Its nearest rival, USDT on TRON, saw a volume of $7 trillion during the same timeframe.
This growth isn’t surprising, given Solana’s popularity for its speed and lower transaction costs, which have attracted interest from traditional financial players like PayPal.
The recent surge in memecoin trading and DeFi activities on Solana has further propelled its rise. Over the past few months, the market has even seen instances when trading activity on Solana surpassed Ethereum’s.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Tether
$0.99952
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Solana
$195.701
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Ethereum
$3,485.48
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
PayPal
PayPal is an American multinational financial technology firm that operates an online payment system in most countries that permits online money transfers and serves as an electronic replacement for conventional paper methods like checks and money orders.
Circle
Circle Internet Financial Ltd is a global internet finance company, built on blockchain technology and powered by crypto assets.
Tether Limited
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
Visa
Visa is an American multinational financial services corporation headquartered in Foster City, California, United States.
