Circle Internet Financial's USDC has exceeded Tether's USDT in transaction volume for the current year, based on data provided by Visa in collaboration with Allium Labs. Recent figures showed USDC's transaction volume standing at $456 billion, significantly higher than USDT's $89 billion.
The data, available on a newly developed dashboard, is adjusted to eliminate any distortions caused by artificial inflation or non-organic activities, offering a more accurate reflection of market dynamics.
Despite USDT having a 68% market share in circulating coins, surpassing USDC's 20%, as reported by DefiLlama, USDC has accounted for half of all stablecoin transactions since the beginning of 2024. This shift challenges the conventional belief that USDT has consistently been the dominant stablecoin in the market.
After experiencing a decrease in circulation due to a banking crisis tied to Circle's relationship with Silicon Valley Bank, USDC has rebounded from $23 billion to $32.8 billion. USDC plays a vital role in the cryptocurrency market by facilitating substantial financial transactions.
Visa's Crypto Chief, Cuy Sheffield, highlights the complexity in analyzing stablecoin transactions and notes a significant decrease in volume when excluding activities driven by bots. This emphasizes the challenge of accurately assessing the true economic activity within this sector.
