The Arc blockchain, a Layer-1 network developed by Circle, reported a stablecoin market capitalization of $670.75 million as of October 19, 2026. This figure represents a 30.05% increase over the previous week, adding approximately $155 million in new stablecoin supply.
USDC dominates the network, accounting for $661.55 million, or 98.63% of the total stablecoin supply. The total value locked on the platform reached $792.96 million on the same date. The mainnet, which launched on September 16, 2026, initially deployed nearly $649 million in USDC.
Despite the growth in capital, user engagement has declined significantly. Daily active wallets have dropped 94% from their peak during the launch week. Trading volumes on decentralized exchanges have also decreased, though lending activity through protocols like Aave and Morpho remains present.
The network benefits from backing by BlackRock, Visa, and Mastercard. However, analysts note that a significant portion of the stablecoin supply is concentrated in a limited number of addresses, posing a potential risk if large holders withdraw their capital.
Circle utilizes Arc to position USDC as the default currency for the ecosystem, allowing network fees to be paid directly in USDC. While the platform shows demand for credit, particularly through borrowing against cirBTC, the disparity between capital inflows and user activity remains a key metric.
