Circle’s USDC stablecoin has overtaken Tether’s USDT in transaction volume, according to data released by Visa in partnership with Allium Labs. The data reveals that USDC recorded $456 billion in transaction volume, compared to USDT’s $89 billion. USDC also accounted for 50% of total transactions since January.
Despite the surge in USDC transaction volume, Tether remains the dominant force in the stablecoin market, with over 68% market share and a market cap of over $100 billion. Ethereum researcher Noelle Acheson offered insight into USDC’s rise, noting that USDT is primarily used globally as a store of value, while USDC is predominantly used within the US for transactions.
USDC’s growth rebound comes after a setback in 2023 when US banks started to limit the use of USDC. However, there has been a series of stablecoin adoptions recently. Stripe, a major player in digital payments, announced the re-introduction of cryptocurrency payments with a focus on USDC. PayPal also launched its stablecoin PYUSD, and Shopify started accepting stablecoin payments. Binance converted its $1 billion security fund to USDC to ensure its balance remains stable despite market volatility.
The growing acceptance of stablecoins like USDC in mainstream transactions is evident with major players like Stripe, PayPal, and Shopify implementing them in their systems. This adoption is further supported by Binance’s move to convert its security fund to USDC. Additionally, the US Congress is considering stablecoin legislation, which could further increase the adoption of stablecoins as the regulatory environment becomes more defined.
The surge in USDC transaction volume can be attributed to various factors such as growing adoption by major payment platforms, increased trust in stablecoins, and the stablecoin’s usage within the US for transactions. USDC’s rise reflects a shift in how stablecoins are being utilized and the growing importance of stablecoin assets in mainstream financial transactions.
As the stablecoin market continues to evolve, with USDC leading the way in transaction volume, it will be interesting to see how regulatory developments impact the adoption of stablecoins. With major players like Circle, PayPal, and Binance embracing USDC, it is clear that stablecoins are becoming an essential part of the digital payment ecosystem.
