SKN | USDC Surpasses USDT in Transaction Volume as Stablecoin Competition Intensifies

Key Points:

• Circle’s USDC has overtaken Tether’s USDT in adjusted year-to-date transaction volume, according to Mizuho analysts.

• USDC recorded roughly $2.2 trillion in transaction volume compared with $1.3 trillion for USDT.

• Despite the volume shift, USDT remains the largest stablecoin by market capitalization.

USDC Overtakes USDT in Transaction Activity

Transaction data suggests that USD Coin has surpassed Tether in adjusted year-to-date transaction volume, marking the first time since 2019 that the ranking has shifted.

According to analysts at Mizuho Financial Group, USDC has generated approximately $2.2 trillion in adjusted transaction volume so far this year. By comparison, USDT recorded roughly $1.3 trillion in transaction activity over the same period. The analysts said the data indicates USDC currently holds about 64% of the adjusted transaction volume between the two stablecoins.

Market Capitalization Still Dominated by USDT

Despite the shift in transaction activity, USDT continues to lead the stablecoin market in terms of overall supply.

Tether’s stablecoin currently has a market capitalization of roughly $184 billion, while USDC’s market value stands near $79 billion.

This means USDT remains the largest stablecoin in circulation, even as USDC shows stronger transaction activity in recent data.

Analysts Raise Target for Circle Stock

Following the transaction analysis, Mizuho raised its price target for Circle stock. Circle, which went public on the New York Stock Exchange in 2025, is the issuer of USDC.

The investment bank increased its target price from $100 to $120, citing the stablecoin’s rising transaction usage as a key factor supporting the company’s growth outlook. Analysts argue that long-term competition between stablecoins may be determined more by transaction usage than by total supply.

Everyday Payments May Decide the Winner

According to Mizuho researchers, the stablecoin that ultimately dominates the market will likely be the one most widely used for everyday payments.

Transaction volume therefore provides an important indicator of real-world adoption, beyond simple market capitalization comparisons. Stablecoins are increasingly used for trading, cross-border payments, decentralized finance activity and digital asset settlement.

Stablecoin Policy Debate Continues in Washington

Meanwhile, the regulatory outlook for stablecoins remains uncertain in the United States. Lawmakers are still debating aspects of digital asset legislation, including whether stablecoin issuers should be allowed to offer yield on customer balances.

The proposed market-structure legislation known as the CLARITY Act passed the U.S. House of Representatives but has stalled in the Senate amid broader policy discussions. The outcome of these debates could significantly influence how stablecoin markets evolve in the coming years.