Circle’s USD Coin (USDC) has reached a $56.3 billion market capitalization, marking a strong recovery from the losses sustained during the last bear market. According to CoinGecko data, the stablecoin’s market cap surged 23.4% from $45.6 billion on Jan. 8 to its current value as of Feb. 10.
At its lowest point during the crypto winter in November 2023, USDC’s market cap had fallen to $24.1 billion. However, recent developments, including Circle’s expansion to new blockchain ecosystems, have fueled the resurgence of the second-largest stablecoin by market capitalization.
Circle Expands USDC to New Blockchains
One of the primary drivers behind USDC’s growth is its increased adoption across multiple blockchain networks. Circle has been actively expanding USDC’s presence, with recent integrations on the Sui and Aptos blockchains.
Additionally, in January 2025, Circle minted $6 billion worth of USDC on the Solana blockchain. This move reinforced Solana’s growing role in the stablecoin sector and further solidified USDC’s position as a leading digital dollar in the decentralized finance (DeFi) space.
USDT Still Dominates, But USDC Gains Market Share
Despite USDC’s impressive growth, Tether’s USDT remains the dominant stablecoin in the market. As of Feb. 10, USDT has a market cap of $141.6 billion, with $4 billion added over the past 30 days, according to CoinGecko data.
Data from DeFiLlama shows that USDT still holds 63% of the stablecoin market share, while USDC has climbed to 25%, up from 19.4% a year ago. This rise suggests that USDC is slowly eating into Tether’s dominance, particularly as regulatory scrutiny around stablecoins intensifies.
Regulatory Push for Stablecoins in the U.S.
Stablecoin regulation has become a major topic in Washington, D.C., with lawmakers pushing for clearer guidelines surrounding their issuance and use. The growing USDC market cap highlights the increasing importance of stablecoins in global finance, making them a focal point for U.S. regulators.
David Sacks, the White House’s AI and crypto policy chief, recently emphasized stablecoins’ potential role in maintaining U.S. dollar dominance. “Stablecoins could extend the dollar’s dominance internationally and extend it online digitally,” Sacks stated, reinforcing the government’s interest in bringing stablecoin innovation onshore.
Meanwhile, Senator Bill Hagerty introduced a stablecoin bill aimed at establishing a regulatory framework that balances safety with innovation. The bill is expected to shape future policies governing digital assets, particularly as stablecoin adoption accelerates.
Stablecoins’ Role in the Global Economy
Stablecoins, such as USDC, have become essential in digital payments, remittances, and hedging against inflation in developing economies. Their ability to maintain a stable value while providing accessibility to global markets has positioned them as a preferred medium of exchange for many users worldwide.
Furthermore, stablecoin holders can earn yields on decentralized finance protocols, mirroring the concept of earning interest on fiat savings accounts. This has attracted investors seeking alternatives to traditional banking systems, further driving demand for digital dollars like USDC.
The Stablecoin Market Keeps Growing
The overall stablecoin market has witnessed tremendous growth, rising from $121 billion in August 2023 to $224 billion as of Feb. 10, 2025. This expansion underscores the increasing reliance on digital assets for financial transactions and liquidity provision.
As USDC market cap continues to grow across blockchain ecosystems the regulatory clarity improves, its market cap could further challenge USDT’s dominance. With the stablecoin sector evolving rapidly, the competition between USDC and USDT will be a key trend to watch in the coming months.
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