How Circle’s USDC Became the Engine Behind the Internet’s Favorite Prediction Machine

Welcome to this edition of The Stablecoin Analyst, where we spotlight one of USDC’s most unexpected and impactful use cases: powering the internet’s favorite prediction market.

USDC and the Rise of Polymarket

You might know USDC as the stablecoin people use for Payments or Finance. But what most don’t realize is that USDC sits at the heart of something much bigger—a truth machine that’s changing how we understand what people actually believe.

That machine is called Polymarket.

What Is Polymarket?

Launched in 2020, Polymarket is a prediction market. It lets people bet on the outcomes of real-world events using USDC—everything from elections and wars to tech product launches and celebrity gossip.

It’s not just betting for fun. It’s about belief. If you think something’s going to happen, you put your money where your mouth is. If you’re right, you earn.

This creates what some call a “truth market” — where real money reveals what people really think will happen. This “skin in the game” approach harnesses the collective wisdom of the crowd, making information more reliable as participants have a financial stake in the accuracy of their predictions. 

That simple mechanic creates a powerful signal. It turns opinions into incentives, and speculation into something closer to collective truth. The more people bet, the more refined the predictions get—especially when money’s on the line.

And unlike polls or news cycles, Polymarket updates in real time. The market doesn’t wait to publish. It reacts as information spreads.

How It Went Viral

Polymarket exploded into public view in 2024 during the U.S. election season. On November 5th alone, more than $516 million in bets were open on the platform—mostly on political outcomes.

Since its launch, Polymarket has seen over 116 million trades, with more than $15.5 billion in volume—all powered by USDC.

At one point, it even shot to the top of the App Store, ahead of CNN and The New York Times.

And soon after, X (formerly Twitter) partnered with Polymarket to bring live prediction markets right into people’s feeds.

And behind all of this? Circle’s USDC.

It’s Not Just About Politics Anymore

In the beginning, Polymarket was all about politics. At one point, political markets made up 97% of all betting volume.

But that is no longer the case. Today, politics accounts for about 33 percent of open interest. The rest has expanded into sports, crypto, tech, business, and pop culture.

People are placing bets on questions like:

• Will the next iPhone launch get delayed?

• Will Bitcoin break 100 thousand dollars?

• Will Taylor Swift announce another tour?

If there is uncertainty, chances are someone has created a market for it on Polymarket.

Politics is still important, but it is no longer the only game in town.

So far, more than 1.2 million traders have backed their beliefs using USDC, across over 23,000 markets that span more than 10 different themes.

Why USDC Matters

This is what makes Polymarket so compelling. The internet is flooded with opinions, rumors, and headlines. But Polymarket shows how people truly process that information—by letting them act on it.

Because bets are made with real money, every market becomes a living signal of public belief. It’s fast, responsive, and often more accurate than traditional polling or media.

But none of this would work with regular cash. It is too slow and too expensive. Wire transfers can take several days to complete, and the fees are high.

That’s where USDC comes in.

USDC makes it easy for anyone, anywhere, to join in. Thanks to its fast settlement, price stability, low fees (anywhere between $0.0002 and $0.08), and global accessibility, it provides the foundation Polymarket needs to operate in real time.

In many ways, USDC turns prediction markets into something closer to a public pulse. It reflects what people actually believe will happen, not just what they say.

The best is yet to be,

The Stablecoin Analyst

_{The information provided on this issue is for educational and informational purposes only and does not constitute financial, legal, or tax advice. Nothing on this issue should be interpreted as an endorsement, recommendation, or advice to engage in any specific transaction, strategy, or investment. The data is presented "as is" without any warranties of accuracy or completeness. Users should consult with professional advisors for specific guidance before making any financial, legal, or tax-related decisions. Use of this dashboard is entirely at your own risk.}