The year 2024 has brought many opportunities for cryptocurrencies, especially stablecoins. In a most recent development, the Circle reported that USDC has reached a new milestone in terms of trading volume in the just-passed year.
It is worth noting that USDC, the second most used stablecoin, recorded $1 trillion in transaction volume in November 2024. Yet, the published report also highlights that USDC circulation grew 78 percent year over year.
Since the past few quarters, stablecoins have continued to prove their relevance over the fiat currency, however, stablecoins such as USDT and USDC are seen as one of the strongest contenders for the U.S. dollar.
In the published report Dante Disparte, Circle’s Chief Strategy Officer and Head of Global Policy said “Today’s generation of stablecoins and blockchain-based financial services are not disrupting the real economy, but rather extending its reach.”
As per the report the usage of USDC as the mode of currency has surged in cross-border payments, online payment, using DeFi protocols, and leveraging to swap fiat for cryptocurrencies.
Stablecoin came into existence with an aim to offer a stablecoin means for investors, without paying huge transaction fees and charges. There are several types of stablecoins in the market, but fiat-backed is one of the most popular and adopted, followed by algorithmic stablecoins and commodity-backed with a few others.
USDC eyeing to replace USDT as the most traded stablecoin
According to the press time data from CoinMarketCap, in terms of trading volume USDT (Tether) stands at the top of the list in the wider crypto market, yet USDC is 5th most traded with $7.04 billion volume in the past 24 hours.
USDT’s trading volume was at $101.46 billion until publishing with a decline of 27.01 percent, and at the same time, its market capitalization was $137.17 billion. At the same time market capitalization of the whole stablecoin market was $213,709,143,545 and the volume was $115,998,678,962.
Both USDC and USDT have continued to expand their presence worldwide by collaborating with leading companies like MasterCard, Visa Card, and other such giants to facilitate decentralized service to the border masses.
The available data notes that Rupiah Token stands at the top of the list in the stablecoin category in terms of circulating supply with 291.13B IDRT in supply, followed by BIDR with 190.58B BIDR in supply, Tether (USDT) stands third with 137.24B USDT.
Despite dozens of stablecoins in the market, USDT and USDC are termed as the major players, as they both hold roughly 50 percent of the category and are one of the most adopted compared to any other existing stablecoin.
As per finance experts, the stablecoin category is expected to reach new heights in the ongoing years, as the border cryptocurrency market is expecting a favorable set of rules from nations like the United States, Russia, and the United Kingdom.
Market watchers argue that a favorable set of rules, lower taxes, and regulatory support are some primary factors that could help stablecoins and cryptocurrencies reach a vast audience. A detailed analysis by BlackRock notes that the adoption of cryptocurrencies has taken comparatively less time to reach the milestone of 300 million users than the adoption of internet and mobile devices took.
