Circle’s USDC Overtakes Tether in Remarkable Comeback

As the cryptocurrency market gears up for a bullish phase in its market cycle, the USD Coin (USDC), the second-largest stablecoin by market cap, is experiencing a significant surge. Recent reports indicate that USDC has surpassed its competitors in terms of liquidity.
USDC’s Expansion
Since December 1, 2023, USDC has seen an impressive growth in supply, with an increase of 14.3% or over $3.5 billion. This surge has propelled its total market cap to $28 billion, outpacing the 8.7% growth observed in the largest stablecoin, Tether (USDT), during the same period.
Analysts attribute USDC’s growth to the overall increase in demand from both retail and institutional investors in the crypto market. The launch of spot Bitcoin ETFs in the U.S. is identified as one of the main catalysts that has contributed to significant capital inflows.
Global Presence
USDC is not only gaining momentum within the U.S., but it is also establishing a stronger presence in non-U.S. markets. The stablecoin has notably increased its share of spot and derivatives activity by five times, despite representing only 4% of total centralized exchange volumes globally.
The partnership between USDC issuer Circle and crypto exchange Coinbase is playing a crucial role in its resurgence. Additionally, the international expansion of Coinbase’s exchange and the relisting of USDC trading pairs on Binance have further fueled the surge of the stablecoin.
Bitcoin’s Rally and Regional Preferences
The resurgence of USDC can be linked to the rally of Bitcoin, which is primarily driven by strong demand from U.S. investors. USDC tends to be more popular among U.S. traders, while Tether dominates in regions like Asia, Africa, and Latin America, particularly on offshore exchanges such as Binance.
In conclusion, the resurgence of USDC, particularly its growth in non-U.S. markets, is making a significant comeback for the stablecoin.