In this special edition of Coin Metrics’ State of the Network, we unpack key takeaways from Circle’s IPO filing and pair them with USDC’s on-chain data to understand how Circle generates revenue, how factors like interest rates affect its business, and the role of platforms like Coinbase and Binance in shaping USDC’s distribution. We also explore USDC’s on-chain footprint to assess Circle’s positioning in an increasingly competitive landscape.
Key Takeaways:
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Circle generated $1.7B in revenue in 2024, with 99% coming from interest income on USDC reserves. Distribution costs to partners like Coinbase & Binance totaled $1.01B, reflecting the pivotal role of exchanges in scaling USDC’s reach.
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USDC’s total supply has rebounded to $60B, with 30-day average transfer volumes reaching $40B—pointing to renewed market confidence and adoption across chains. However, USDC remains sensitive to shifts in interest rates, competitive pressures, and regulatory developments.
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USDC usage across major exchanges continues to grow, now representing 29% of Binance spot volume, boosted by Circle’s strategic partnerships.
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Looking ahead, Circle’s next chapter may hinge on diversifying beyond passive interest income toward active revenue streams tied to tokenized assets, payment infrastructure, and capital markets integration.
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