Jeremy Allaire Responds to OUSD Competition: USDC's Moat Comes from Network Effects and Liquidity Advantages

CoinFeed July 1 news, Circle CEO Jeremy Allaire posted that the stablecoin market is inherently a platform business driven by strong network effects, often exhibiting a 'winner-takes-all' pattern. Its core moat mainly comes from three aspects: network effects formed by the application and developer ecosystem, global liquidity depth, and deep integration with regulatory systems of various countries. According to Allaire, USDC has established an access network of thousands of service providers and has become one of the three most liquid digital assets globally. In Q1 2026, USDC on-chain transaction volume approached $30 trillion, accounting for about 80% of dollar stablecoin transaction volume, while USDT accounted for the remaining approximately 20%, and other stablecoins combined were less than 0.5%.