USDC circulation hits $77 billion as investors seek regulated digital assets amid market volatility and regulatory shifts.
Circle reported a 20% increase in total revenue and reserve income to $694 million for the first quarter, driven by rising demand for its USDC stablecoin. The token’s circulation rose 28% year-over-year to $77 billion, reflecting investor rotation into stablecoins during market turbulence and geopolitical uncertainty.
The adoption of USDC was bolstered by regulatory developments, including Europe’s MiCA framework and the U.S. GENIUS Act, which steered users toward compliant digital assets. Coinbase, Circle’s strategic partner, reported declining trading volumes last week, highlighting a broader shift in investor behavior.
Circle’s revenue growth also benefited from higher interest income on reserves, which are invested in short-dated U.S. Treasuries and bank deposits. Analysts view stablecoins as a multi-trillion-dollar market opportunity, with rate cuts in late 2025 expected to further support the sector.