Circle's stablecoin USDC has surpassed market leader Tether (USDT) in transaction volume this year, according to data compiled by banking giant Visa.
Visa Says Circle's USDC Takes the Lead in Stablecoin Transactions
The adjusted stablecoin metric, which Visa produced in partnership with Allium Labs, is intended to reflect the state of the stablecoin market less than “potential distortions that may arise from inorganic activity and other artificial inflationary practices,” the company said in a statement on the new dashboard's website.
Data shows Circle's USDC has increased market share since the beginning of 2024, recording $456 billion in trading volume last week, compared to $89 billion for Tether's USDT.
USDC has also accounted for 50% of total transactions since January. Visa, which partnered with Circle in 2020, did not explain what led to the increase in USDC usage.
Noelle Acheson, author of the Crypto Is Macro Now newsletter, said USDT is held more outside the US as a dollar-based store of value, while USDC is used as a transaction currency in the US, which could explain the findings.
Stablecoins are cryptocurrencies that aim to maintain a fixed price in parallel with a fiat currency, usually the US dollar.
*This is not investment advice.