The rapid growth of USDC is increasingly related to its regulatory transparency and institutional appeal, especially in the context of Circle advancing its potential IPO plans.
USDC Supply Growth
As of April 19, the supply of USDC has approached 61 billion USD, an increase of 17 billion USD from 44 billion USD at the beginning of the year, representing a growth rate of 38.6%. During the same period, the supply of USDT rose from 138 billion USD to 145 billion USD, a relatively smaller increase. Currently, the total supply of stablecoins stands at 226 billion USD.
Stablecoin Chain Distribution: Ethereum remains the primary chain for stablecoins, holding a supply of 130 billion USD, while other chains (like TRON and Solana) account for the remaining supply.
Regulatory and Institutional Appeal
The accelerated growth of USDC is closely linked to its regulatory transparency and institutional appeal. Circle's transparent reserve practices and compliance framework make USDC the preferred stablecoin for regulated entities in the US and EU markets. Circle's IPO plans reflect a broader attempt to integrate traditional finance with cryptocurrency, which may further solidify USDC's position as the stablecoin of choice for institutional players.
Market Trends
The widening gap in growth between USDC and USDT indicates a shift in market preference for stablecoins. Although USDT still maintains overall dominance, the preference for USDC among regulated entities and DeFi protocols is becoming increasingly evident, especially as regulatory transparency sets clearer guidelines for stablecoin issuers like Circle. The near 1:1 exchange rate between USDT and USDC allows participants to seamlessly migrate to their preferred stablecoin.
