Circle’s USDC stablecoin has reached an all-time high market capitalization of over $56 billion, signaling renewed growth in the stablecoin sector.
The surge comes as decentralized finance (DeFi) activity picks up, particularly on the Solana blockchain, boosting USDC adoption and demand.
Over the past month, USDC added $10.2 billion to its market cap, significantly outpacing the $4.6 billion increase in Tether’s USDT, according to Artemis data.
Despite the surge, USDT remains the dominant stablecoin, with a market capitalization of $142 billion.
This milestone marks a full recovery for USDC after the 2023 US regional banking crisis, which temporarily caused the stablecoin to lose its peg to the US dollar.
Circle had held part of its reserves in Silicon Valley Bank, which collapsed, leading to a temporary loss of confidence among investors.
Meanwhile, Tether capitalized on the shift, surpassing its 2022 market cap peak by May 2023.
Stablecoins, such as USDT and USDC, play a crucial role in crypto markets by providing liquidity and facilitating trading on exchanges.
Their growing supply is often viewed as a key indicator of investor confidence and market strength.
Recent data shows that stablecoin expansion, particularly in USDT and USDC, has accelerated in recent weeks, aligning with previous periods of strong Bitcoin (BTC) and altcoin rallies.
While macroeconomic uncertainties persist, the rapid growth of stablecoins signals renewed investor interest and a potentially bullish outlook for the broader cryptocurrency market.
Trump open to considering USDC for strategic reserves
Meanwhile, the Trump administration is reportedly considering integrating cryptocurrencies such as XRP, Solana, and USDC into a national strategic reserve.
According to a New York Post report, the Trump transition team is exploring the establishment of an “America-first strategic reserve”.
However, some within the crypto sector worry that emphasizing alternative coins may dilute efforts to legitimize Bitcoin, the world’s largest cryptocurrency, which remains central to discussions of a strategic Bitcoin reserve.
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