The circulating supply of US Dollar Circle Coin (USDC) has surpassed $50 billion, marking a major milestone for the stablecoin after three years. Data from DeFiLlama indicates that supply reached nearly $51 billion on January 22, reflecting a strong recovery from its low in 2023, when it fell below $24 billion.
Despite this significant growth, the stablecoin remains approximately 10% below its highest recorded supply of $55.9 billion, which was observed in mid-2022. This indicates that although the US dollar has regained significant strength, it has not reached yet to its previous peak.
Transforming Blockchain Distribution Trends
Over the past three years, the distribution of USDC across different blockchain networks has undergone notable changes. While Ethereum remains a dominant stablecoin platform, its share of the total supply has declined significantly. Ethereum’s share previously held 85% of the USDC supply, but has now fallen to 61%, demonstrating the gradual migration of liquidity to other blockchains.
In contrast, Solana saw a significant increase in its share of USDC supply. Solana’s contribution previously represented less than 3%, but has now risen to 16%. This shift has been largely attributed to traders who prefer the network’s lower transaction costs, especially for speculative trading activities involving memcoins and AI-related tokens. The cost effectiveness and efficiency of Solana’s infrastructure make it an attractive option for market participants seeking to reduce fees and improve transaction speed.
Emerging Blockchain Alternatives
Beyond Ethereum and Solana, the emergence of new blockchain platforms has played a crucial role in reshaping USDC distribution. One of the major contributors to this shift is Base, an Ethereum Layer 2 network developed with support from Coinbase. The platform offers improved scalability and reduced transaction costs, making it a competitive alternative to stablecoin transactions.
In addition, layer-one networks such as Hyperliquid have gained traction, providing faster and more efficient solutions for users involved in digital asset trading. These platforms are increasingly favored by traders looking for low-cost, high-speed transaction options, further diversifying USDC usage patterns.
As stablecoin adoption continues to evolve, the changing dynamics within blockchain ecosystems highlight the growing preference for networks that prioritize affordability and efficiency. This trend indicates that although Ethereum is still a major player in the stablecoin market, newer blockchain platforms are poised to capture a larger share of USDC transactions in the future.
