By June 2025, USDC maintains its position as the second most used stablecoin, with a market capitalization exceeding $60 billion. Issued by Circle, this digital currency backed by US dollars has been adopted by decentralized finance (DeFi) platforms, centralized exchanges, and payment services. Its growth has been driven by a more favorable regulatory environment in the United States, especially following the approval of the MiCA law in Europe, which establishes clear rules for the
However, Circle faces challenges. The company relies heavily on interest income generated from USDC reserves, which are invested in short-term financial instruments. A potential decrease in interest rates could significantly impact its earnings. Additionally, the high competition from other stablecoins and the costs associated with distributing USDC pose risks to its long-term sustainability.
