In recent months, there has been a significant shift in trading volumes between the stablecoins USDC and USDT. While USDC recorded growth, USDT is facing a decline in trader interest.
Growing USDC Market
Circle’s stablecoin USDC reached $219 billion in trading volume by April 2025, doubling from January. This increase coincided with a partnership between Circle and Binance, which expanded USDC’s use across the exchange's global platforms.
Decline in USDT Volumes
At the same time, competing stablecoin USDT saw its exchange volumes decrease by roughly half over the same six-month period. The situation is compounded by fluctuations in Bitcoin's price, which has struggled to maintain thresholds of $90,000 and $95,000.
Role of Regulatory Initiatives
Regulatory developments may also influence stablecoin preferences. The European Union’s MiCA framework, set to take effect in mid-2025, imposes stricter transparency requirements on issuers. Circle has positioned USDC as compliant with these rules, while Tether, which faced scrutiny in 2023, has not yet detailed adjustments to meet MiCA standards.
In conclusion, USDC's growth highlights a change in trader behavior and the impact of regulatory changes on the stablecoin market. Enhanced transparency and institutional trust are becoming key factors for the survival of various stablecoins in the new market landscape.
