Stablecoin Transaction Volume Hits a New Record High as USDC Surpasses USDT

Stablecoins have hit an all-time high in monthly transaction volume, as Circle’s USDC (USDC) flipped Tether’s USDt (USDT), new data shows.

Key takeaways:

• Stablecoin monthly transaction volume reached a record $1.8 trillion in February.

• USDC comprised 70% of all stablecoin volume.

• Rising stablecoin supply on exchanges puts crypto markets in a good position to recover.

USDC “consistently” flips USDt transfer volume

The stablecoin transfer volume reached $1.8 trillion in February, setting a monthly record, according to data from Allium.

Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to fiat currencies like the US dollar, and can be hosted on multiple blockchains.

Similarly, the volume of USDC transactions reached a high of $1.26 trillion, representing a new milestone in the adoption of the second-largest stablecoin by market cap since its launch in September 2018. 

Related: Florida Senate passes state-level stablecoin bill, awaits DeSantis’ signature

This was more than double that of USDt, whose transfer volume was $514 billion in February.

In fact, USDC has “consistently flipped” Tether in transfer volume over the last few months, founder at Moonrock Capital, Simon Dedic, said in a Friday post on X. 

USDC’s usage comes as a “surprise” given that its market cap is less than half that of USDt, Dedic added. USDC is the second-largest stablecoin by market cap at $77.4 billion, compared to USDt’s $184 billion.

Moreover, USDC’s supply has grown faster than USDt’s in recent weeks. Over $3 billion in USDC has been printed already in March, according to market intelligence firm Arkham, as USDt’s supply has remained relatively unchanged.

As Cointelegraph reported, USDC issuer Circle Internet Group reported strong Q4/2025 earnings, attributed to rapid growth in the USDC’s business and expanding payments operations.

More stablecoin liquidity suggests “buying power”

The Stablecoin Supply Ratio (SSR), or the ratio of the Bitcoin (BTC) market cap relative to stablecoin market cap, is “steadily recovering after crashing” in February, said CryptoQuant analyst Sunny Mom in a Friday Quicktake post, adding:

Meanwhile, Bitcoin’s latest push to $74,000 was fueled by a recovery in stablecoin supply on crypto exchanges, which rose to a three-week high of $66.5 billion on Friday. 

Stablecoin inflows to exchanges have boosted the SSR alongside Bitcoin’s (BTC) price. On March 5, the total amount of stablecoins transferred to the exchange amounted to nearly $5.14 billion, up from $1.14 billion on March 1.

More stablecoins on exchanges means more buying power for cryptocurrencies. In the past, the return of sidelined capital to exchanges was a major catalyst for the start of Bitcoin bull markets.