Circle’s USDC beats Tether USDT in market cap surge during 2024

Circle’s USD Coin stablecoin outpaced all other stablecoins in terms of market capitalization growth in 2024, after a decline in 2023.

The circulation of USD Coin (USDC) grew 78% year-over-year, outpacing the growth rate of all global stablecoins, Circle said in its third annual State of the USDC Economy Report released on Jan. 14.

“The growth of USDC in 2024 can be attributed to a combination of factors: the maturing regulatory clarity across major markets, the scalability of blockchain infrastructure, and our relentless focus on trust, transparency and utility,” a spokesperson for Circle told Cointelegraph.

The USDC market spike in 2024 followed a massive drop in 2023 when the stablecoin’s market value shrank as much as 45% following Silicon Valley Bank’s (SVB) failure.

USDC is still 22% far from its market cap highs

USDC, the second-largest stablecoin by market cap after Tether’s USDt (USDT), entered 2024 with a market value of $24.4 billion and saw a 79% surge to $43.9 billion by the end of the year.

Despite posting massive growth in 2024, USDC is still down about 22% from its market cap highs of $55.9 billion recorded in June 2022.

USDC struggled in 2023 amid banking issues as Circle could not withdraw some of USDC’s $40 billion reserves from SVB. The issue triggered a major sell-off in USDC, with the stablecoin briefly depegging from the US dollar.

USDC versus USDT: Recovery vs. continued growth

Compared to USDC, Tether’s USDT saw more modest growth in market value in 2024, with the stablecoin’s market cap increasing about 50% from $91.7 billion at the end of 2023 to $137.5 billion by the end of 2024.

Unlike USDC, however, USDT’s 50% growth in 2024 marked continued growth of the stablecoin, with its market cap surging to new historic highs last year.

Since late 2020, USDT’s market cap has surged 552%, while USDC has recorded a 1,135% rise.

On the other hand, USDT’s market value has increased by 74% from 2021, while USDC’s market cap is only up 8.8% since late 2021.

Circle praises regulatory clarity, while many warn of uncertainty

In its 2025 report, Circle said that the rapid adoption of USDC reflects growing regulatory clarity for stablecoins, where its leadership is setting a benchmark for safety and transparency.

Circle specifically referred to regional regulatory developments such as European Markets in Crypto-Assets Regulation (MiCA), as the firm became the first MiCA-licensed stablecoin issuer in July 2024.

“While USDC’s growth has been broad-based, we’ve seen particularly strong adoption in regions where regulatory clarity is enabling greater integration of digital assets into traditional finance, such as the European Union under MiCA and emerging markets where remittances and cross-border payments are critical,” a spokesperson for Circle told Cointelegraph.

Related: Tether will relocate HQ to El Salvador after securing license

While Circle has praised regulatory certainty, some industry executives like BitGo stablecoin director Ben Reynolds have highlighted that regulatory uncertainty and the need for greater transparency will remain significant challenges in 2025.

Circle bets on stablecoin regulations in the UK, Brazil, Singapore and Japan

In the report, Circle also mentioned that USDC is available in more than 180 countries in its mission to provide services to 1.5 billion unbanked or underbanked people globally.

In 2024, the key USDC markets were regions with high remittance activity, such as Latin America, Africa and Southeast Asia, where stablecoins provide an alternative to expensive and slow traditional payment rails, a spokesperson for Circle told Cointelegraph.

The issuer expects some regulatory stablecoin developments in countries including the United Kingdom, Brazil, Singapore and Japan in 2025.

“The UK, Brazil, Singapore, Japan and other jurisdictions around the world are currently in the process of putting in place consistent and clear regulations for stablecoins. This will help ensure all players in the industry operate by the same high standards,” the representative said.

Magazine: How crypto laws are changing across the world in 2025