USDC Circulating Supply Surges Amid Growing Demand, Shifts to Ethereum and Base Signal Changing Stablecoin Preferences
USDC, issued by Circle, has seen significant growth in both supply and transaction volume, reflecting increasing demand and shifting usage patterns. Between 2020 and 2025, USDC’s circulating supply expanded from under $3 billion to over $61 billion, with a notable 100 million USDC net increase in the week ending June 5. Circle maintains reserves exceeding $61 billion, providing strong backing for the stablecoin. Recent data reveals a pivot in transaction activity from Solana to Ethereum and the Base network, likely driven by evolving blockchain infrastructure and user preferences. USDC now accounts for around 30% of the stablecoin market, and its rising supply and active use underscore its vital role in providing liquidity and stable trading pairs in the cryptocurrency market. Traders should closely monitor USDC supply trends, as increases typically indicate heightened market confidence and activity.
Bullish
The consistent increase in USDC supply, supported by strong reserves and a shift in transaction activity to major blockchains like Ethereum and Base, signals robust trader confidence and growing market activity. As USDC remains a preferred stablecoin for trading, higher supply and transaction volumes typically attract greater liquidity and participation, which often has a bullish short-term and long-term implication for the stablecoin’s market utility and its associated trading pairs.