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USDC Stablecoin Overtakes USDT in Transaction Volume
Circle’s USDC stablecoin has reached a significant milestone in the stablecoin market by surpassing Tether’s USDT in transaction volume, as reported by Visa in collaboration with Allium Labs.
Key Highlights:
- USDC recorded a transaction volume of $456 billion, outpacing USDT’s $89 billion.
- USDC accounted for 50% of total transactions since January.
The surge in USDC transaction volume signifies a growing market share for the stablecoin, although Tether remains the dominant player in the stablecoin market with a market cap exceeding $100 billion.
Insight into USDC’s Rise
Crypto analyst Noelle Acheson highlighted USDC’s increasing transaction volume, attributing it to the coin’s predominant use within the US for transactions, in contrast to USDT’s global use as a store of value.
USDC’s Continued Growth Trajectory
Following setbacks in 2023, USDC has seen a rebound in growth, fueled by various developments in the industry:
- Stripe’s reintroduction of cryptocurrency payments, focusing on USDC integration.
- PayPal’s launch of stablecoin PYUSD and Shopify’s acceptance of stablecoin payments.
- Binance’s conversion of the $1 billion Secure Asset Fund for Users (SAFU) to USDC for enhanced reliability.
The industry’s increasing adoption of stablecoins, including USDC, in mainstream transactions is further evidenced by these recent developments. Additionally, with the US Congress contemplating stablecoin legislation, the path seems clear for continued growth and adoption of stablecoin assets in the market.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
