USDC 2024 report shows 78% growth, as transactions reach $20 trillion | CryptoTvplus
Circle’s stablecoin, USDC, has reached a milestone of $20 trillion in terms of transaction volume after six years of its existence. The company’s 2024 report also noted that the first monthly stablecoin transaction worth $1 trillion was in November 2024. This data underscores further usage and adoption of USDC as one of the most popular stablecoins.
A stablecoin is a cryptocurrency pegged to assets such as fiat currencies (such as the US dollar), commodities (such as gold) or a basket of assets, reducing price volatility for practical use in transactions and savings.
USDC (USD Coin), from Circle, is a securities-collateralized stablecoin pegged 1:1 to the US dollar, backed by cash and short-term US Treasuries.
Circle also offers EURC (Euro Coin), a stablecoin pegged to the euro, providing similar stability to digital euro transactions.
78% annual growth
In the same year, trading volume increased by 78% compared to the previous year. This growth rate exceeds that of all other major global stablecoins, especially the main competitor, USDT.
Tether’s stablecoin, USDT, has seen a steady increase in market capitalization but at a slower pace than USDC. At the beginning of the year, the total market capitalization of USDT was $91.7 billion. By the end of 2024, it had risen to $137.5 billion, an increase of about 50%.
Despite USDC’s significant growth in 2024, its total market capitalization remains about 22% below its peak. $55.9 billionReached June 2022. This indicates that while the US dollar is recovering and expanding, it has not yet returned to the peak volume of two years ago.
USDC has become MICA compliant and is subject to Canadian stablecoin rules
An important factor in USDC’s rise in 2024 is Circle’s commitment to regulatory compliance and transparency. In 2024, Circle made history as the first major global stablecoin issuer to fully comply with the European Union’s Markets in Cryptoassets (MiCA) regulation. This compliance is critical to the USDC’s stability and future in Europe, providing users with a sense of security in an increasingly regulated environment.
The MiCA Regulation, proposed by the European Union, provides a clear legal framework for the management of digital assets. MiCA aims to ensure financial stability, protect investors and promote innovation in the cryptocurrency market by setting guidelines for crypto asset issuers and service providers.
Read also: Circuit to launch USDC on Sui Network
The regulation addresses areas such as stablecoins, market abuse, and the operation of crypto service providers.
For example, it requires stablecoin issuers to maintain sufficient reserves and adhere to operational guidelines, ensuring stability and reliability. Additionally, it enforces transparency, consumer protection, and security for companies in the cryptocurrency industry.
In addition, circle become The first stablecoin issuer to meet Canada’s new listing rules, demonstrating its commitment to maintaining a reliable and globally compatible stablecoin.
The positive impact of USDC extends beyond traditional financial systems. It plays a key role in providing financial access to unbanked and underbanked populations around the world. It currently serves users in over 180 countries around the world and has an open network integrated with 16 different blockchains.
EURC $1 billion weekly transfer volume
In October 2024, EURC, the euro-backed equivalent of USDC, reached a milestone by surpassing $1 billion in weekly transfer volume. It has also become the largest euro-backed stablecoin in terms of total circulation.
Euro-backed stablecoins are digital currencies linked to the Euro (EUR), the official currency of the European Union. Like USDC, which is pegged to the US dollar, these stablecoins are backed by reserves held in euro-denominated assets.
In addition to EURC, other Euro-backed stablecoins include EURS (STASIS), AEUR (EURt, Tether), CEUR (Celo), and EURA (Corner Protocol). Among these companies, EURS has the highest market capitalization exceeding $129 million.
