The battle for stablecoins takes a new turn. In 2024, Circle’s USD Coin (USDC) performed exceptionally well, posting market capitalization growth of 78%, surpassing all of its stablecoin competitors, including historical leader Tether (USDT).
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The stablecoin tug-of-war turns to Circle’s advantage in 2024
The USDC’s trajectory in 2024 marks a remarkable turnaround. Circle has published its third annual report on January 14, revealing USDC’s exceptional performance in 2024. The stablecoin saw its market capitalization jump from $24.4 billion to $43.9 billion, marking a 78% increase. This impressive growth comes after a difficult 2023, marked by a 45% drop following the collapse of Silicon Valley Bank (SVB).
Circle attributes this success to several key factors, including improved regulatory clarity in major markets and the development of blockchain infrastructure. Obtaining the first MiCA license in Europe in July 2024 has particularly strengthened the company’s credibility.
Tether maintains its dominance despite more moderate growth
For its part, Tether is showing more modest but steady growth. USDT saw its capitalization increase by 50% in 2024, from $91.7 billion to $137.5 billion. This growth is part of a more stable long-term dynamic, with an increase of 552% since the end of 2020, compared with 1,135% for the USDC over the same period.
Nevertheless, the USDT retains its position as the undisputed leader of the stablecoin market. Its capitalization is reaching new all-time highs, while the USDC, despite its strong growth in 2024, is still 22% below its June 2022 record ($55.9 billion).
The race between these two stablecoin giants promises to be particularly interesting in 2025, as new regulatory frameworks take shape in the UK, Brazil, Singapore, and Japan. USDC, already present in over 180 countries, is banking on transparency and regulation to continue its expansion, particularly in emerging markets where the need for cross-border payment solutions remains high.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
