tl;dr
Visa's data shows that Circle's USDC has surpassed Tether's USDT in transaction volume since the start of 2024. USDC transacted $456 billion over the past week, capturing 50% of total stablecoin transactions YTD. Despite Tether's dominance in circulation, USDC's rise suggests a shifting preference. ...
Circle’s USDC has surpassed Tether’s USDT in transaction volume since the start of 2024, transacting $456 billion over the past week and capturing 50% of total stablecoin transactions YTD. Despite Tether's dominance in circulation, USDC's rise suggests a shifting preference.
According to Visa's data, Circle's USDC transaction volume has surpassed Tether's USDT since the beginning of 2024, with USDC transacting $456 billion in volume over the past week, compared to Tether's $89 billion. USDC accounted for 50% of total stablecoin transactions YTD. This surge in USDC's usage defies expectations, as Tether’s USDT has been traditionally viewed as the dominant industry stablecoin. USDT holds a market dominance of 68%, in contrast to USDC’s 20%.
Noelle Acheson of the Crypto Is Macro Now newsletter highlighted that the geographical preference for these stablecoins could have triggered this trend, with USDT being more held outside the US as a dollar-based store of value and USDC being used in the US as a transaction currency. Stablecoins are crucial in facilitating trading and cross-border remittances. However, interpreting stablecoin transaction data is often tricky as these coins can be used across a range of use cases and their transactions can be initiated manually by an end user or programmatically through bots.
Following revelations of Circle’s significant exposure to Silicon Valley Bank affecting USDC's circulation in 2023, recent insights indicate a recovery, with the total value of USDC in circulation rebounding to $32.8 billion, after dropping from $56 billion to $23 billion in December 2023.
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