- USDC transaction volume surpasses USDT since early 2024, gaining market share YTD.
- USDC hits $456 billion weekly volume, representing half of total stablecoin transactions.
- USDC circulation value rebounds to $32.8 billion after December 2023 decline.
On-chain analytics provider Visa Inc. has reported that since the start of 2024, Circle’s USDC transaction volume has exceeded that of Tether’s USDT. Current data shows a consistent increase in USDC’s market share year-to-date (YTD).
In the last week alone, USDC’s transaction volume hit $456 billion, while USDT’s volume was $89 billion. Furthermore, USDC represented half of the total stablecoin transaction volume YTD. However, as Bloomberg noted, Visa, which partnered with Circle in 2020, has not provided reasons for the surge in USDC transactions.
Bloomberg also pointed out that these figures are surprising given that USDT has traditionally been seen as the industry’s leading stablecoin. According to DefiLlama, USDT maintains a market dominance of 68%, while USDC has a 20% share.
Noelle Acheson, who writes the ‘Crypto Is Macro Now’ newsletter, suggested that the regional preferences for these stablecoins might be influencing this shift. Acheson mentioned, “USDT is favored as a dollar-based value reserve outside the US, whereas USDC is predominantly used within the US for transactions.”
Stablecoins, which are cryptocurrencies pegged to the US dollar, play a vital role in enabling trading and international money transfers. Cuy Sheffield, Visa’s head of crypto, emphasized the complexity of interpreting stablecoin transaction data, noting that “stablecoins can serve various purposes, with transactions being manually initiated by users or automatically through bots.”
Additionally, Bloomberg reported that when filtering out bot-related trades, the total transfer volume for the 30 days leading up to April 24 dropped from $2.65 trillion to $265 billion.
After the news of Circle’s significant ties to Silicon Valley Bank came to light, the total value of USDC in circulation fell from $56 billion to $23 billion in December 2023. However, recent data shows a resurgence, with the total value of USDC in circulation climbing back to $32.8 billion.
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