Circle’s USDC stablecoin has surpassed Tether’s USDT in transaction volume, according to data released by Visa in partnership with Allium Labs. The data reveals that USDC recorded a transaction volume of $456 billion last week, compared to USDT’s $89 billion. USDC also accounted for a 50% share of total transactions since January. Despite this achievement, Tether still dominates the stablecoin market with a market share of over 68% and a market cap of over $100 billion. Analysts suggest that USDC’s rise in transaction volume can be attributed to its predominant use within the US as a transaction currency, while USDT is primarily held outside the US as a dollar-based store of value. The increase in USDC volumes follows a series of stablecoin adoptions by major players in the digital payments industry, indicating a growing acceptance of USDC and other stablecoin assets in mainstream transactions. In addition, Binance has converted its Secure Asset Fund for Users (SAFU) to USDC stablecoin to ensure its reliability despite market volatility. The US Congress is also considering stablecoin legislation, which could further increase the adoption of stablecoins as the regulatory environment becomes clearer.
