Circle's USDC stablecoin has demonstrated a notable increase in market dominance, rising from 20% to 25.5%, as USDT's share concurrently declined, Coinspeaker reported.
The strategic positioning of Circle and adherence to US regulatory compliance have been instrumental in this shift. Solana's DeFi ecosystem expansion, bolstered by Trump-backed initiatives, has significantly driven USDC adoption, with a reported $6 billion minted on the network in January 2025.
The stablecoin landscape is undergoing a palpable change, with USDC leveraging institutional partnerships and Solana's burgeoning growth to pose a challenge to USDT's longstanding dominance. The global mainstream embrace of digital assets and Web3 protocols has further democratized the use of fiat-backed stablecoins, with Tether's USDT and Circle's USDC at the forefront.
While other fiat-backed stablecoins have seen stagnation, USDC's popularity has surged, evidenced by a more than 119 percent increase in average daily transactions since January 2024. Market data from Coingecko shows that a year ago, USDC's market dominance was approximately 20.08 percent, contrasting with USDT's 73.51 percent. As of February 3, 2025, USDT's dominance has diminished to about 65.40 percent, while USDC has climbed to roughly 25.5 percent market share.
Circle's USDC, valued at over $54 billion with an average 24-hour trading volume of $19.4 billion, is stringently regulated in key markets, including the United States. Since 2018, Circle has secured numerous strategic partnerships globally, enhancing the distribution of its stablecoin.
The USDC has seen a significant uptick in the United States, particularly via the Solana network, following Tether Limited Inc.'s relocation of headquarters to El Salvador. The Solana network's evolution into a significant DeFi ecosystem, necessitating stablecoins for liquidity purposes, has been a factor in USDC's growth. The Trump administration's emphasis on reinforcing the US dollar as the global reserve currency via dollar-backed stablecoins has also played a role in USDC's ascension.

On-chain data reveals that Circle minted about $6 billion in USDC on the Solana network in January 2025 alone. The launch of the TRUMP memecoin and subsequent digital asset accumulation by Trump-backed World Liberty Financial (WLFI), including over $482 million in USDC, has underscored the demand for USDC.
The Solana network's stablecoin market cap has soared to more than $11.7 billion from around $2.2 billion a year prior. With the US government working towards crypto regulatory clarity, the USDC supply on the Solana network is poised for further growth.
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