USDC market share rises to 25.5%, challenging USDT's leadership

USDC market share rises to 25.5%, challenging USDT’s leadership

2025-02-04

According to Coinspeaker, Circle’s USDC stablecoin market dominance has increased significantly, from 20% to 25.5%, while USDT’s share has declined.

Circle’s strategic positioning and adherence to U.S. regulatory compliance played a key role in this transformation. The expansion of Solana’s DeFi ecosystem, fueled by the Trump-backed initiative, has significantly boosted USDC adoption, with $6 billion in USDC reportedly minted on the network in January 2025.

The stablecoin landscape is clearly changing, with USDC leveraging institutional partnerships and Solana’s thriving growth to challenge USDT’s long-standing dominance. The global mainstream acceptance of digital assets and Web3 protocols has further promoted the use of fiat-backed stablecoins, with Tether’s USDT and Circle’s USDC leading the way.

While other fiat-backed stablecoins have seen stagnant growth, USDC has seen a massive surge in popularity, as evidenced by an increase in average daily trading volume of over 119% since January 2024. Market data from Coingecko shows that USDC’s market dominance was about 20.08% a year ago, while USDT’s was 73.51%. As of February 3, 2025, USDT’s dominance has fallen to approximately 65.40%, while USDC has risen to approximately 25.5% market share.

Circle’s USDC has a market capitalization of over $54 billion, an average 24-hour trading volume of $19.4 billion, and is strictly regulated in major markets including the United States. Since 2018, Circle has established numerous strategic partnerships around the world to strengthen the distribution of its stablecoin.

After Tether Limited Inc. moved its headquarters to El Salvador, USDC usage in the United States, especially through the Solana network, has increased significantly. The Solana network has developed into an important DeFi ecosystem, which requires stablecoins to provide liquidity, which is also a factor in the growth of USDC. The Trump administration’s policy of strengthening the dollar’s status as a global reserve currency through dollar-backed stablecoins has also driven the rise of USDC.

On-chain data shows that Circle minted approximately $6 billion in USDC on the Solana network in January 2025 alone. The launch of the TRUMP meme coin and the subsequent accumulation of digital assets by Trump-backed World Liberty Financial (WLFI), including over $482 million in USDC, highlighted the demand for USDC.

The Solana network’s stablecoin market capitalization has surged to more than $11.7 billion from about $2.2 billion a year ago. As the U.S. government works to clarify cryptocurrency regulation, the supply of USDC on the Solana network is expected to grow further.