USDC market cap hits $59B, cuts Bitcoin dominance below 50%
Bitcoin's market share in total crypto capitalization fell to 49.5% as USDC stablecoin issuance jumped 35% in 2025 to $59B, climbing to the second-largest crypto by market cap. Analyst warns this surge in USDC use for payments and decentralized finance protocols could erode Bitcoin's dominance further.
1. USDC Issuance Surge
Circle’s USDC stablecoin saw its market capitalization rise 35% in 2025, reaching $59 billion. This growth has propelled USDC past other altcoins to become the second-largest cryptocurrency by total market cap.
2. Implications for Bitcoin Dominance
Bitcoin’s share of the overall crypto market fell to 49.5%, the lowest level since 2018. The expanding use of USDC in payments and DeFi has chipped away at Bitcoin’s traditional status as the primary store of value.
3. Potential Impact on Circle
Circle stands to benefit from increased demand for USDC, with higher transaction volumes and reserve holdings. However, the shifting market dynamics could pressure Bitcoin-centric platforms and reshape investment flows across the crypto sector.