USDC Volume Hits Record, Overtakes Tether to Lead Stablecoin Market in February

Stablecoins maintain a stable value through backing by assets such as the U.S. dollar. Beyond serving as a medium of exchange in crypto markets, they are increasingly used for cross-border payments, settlement and decentralized finance. Visa continues to track on-chain stablecoin activity, offering insights into real-world adoption and shifts in competition among issuers such as Circle and Tether.

Visa data showed stablecoin transaction volume reached a record $1.79 trillion in June, surging 63% from May. Circle-issued USDC accounted for about 67% of trading volume among major stablecoins that month, putting it well ahead of Tether's USDT and reflecting continued growth in stablecoin payments and DeFi use.

Stablecoins are issued by companies such as Tether and Circle and are typically backed by reserves of U.S. dollar cash or short-term U.S. Treasury securities, with the aim of maintaining a value of $1 per token. Unlike Bitcoin, which has a fixed supply and a floating price, stablecoins can serve as a lower-volatility medium for trade settlement, cross-border payments and on-chain finance.

TerraUSD lost its $1 peg in May 2022 and collapsed alongside LUNA, rapidly wiping out about $40 billion in market value and underscoring algorithmic and liquidity risks. The GENIUS Act was signed into law in the United States on July 18, 2025, requiring payment stablecoins to be backed 1:1 by eligible assets and establishing a regulatory framework for commercial use.

Stablecoins, typically pegged to fiat currencies such as the US dollar, are widely used for crypto trading, storing funds and cross-border payments. CEX.IO said investors sought refuge in less volatile stablecoins amid broader crypto market weakness, driving up both their share of trading and total supply. The shift also signals a more conservative preference among market participants.

Global stablecoin supply rose to a record $315 billion in the first quarter of 2026, spanning January through March. Stablecoins also accounted for a record 75% of total cryptocurrency trading volume. USDC's supply and market share increased, while the supply of longtime market leader USDT declined.

USDC is a stablecoin issued by Circle and backed by U.S. dollar assets. It is widely used for crypto trading, cross-border payments and capital preservation. Its market capitalization approaching a record high not only signals rising demand for onchain dollars but may also shed light on capital flows from the United Arab Emirates and pressure in Dubai’s property market.

As of July 20, 2026, USDC’s circulating supply had risen to about $79.2 billion, leaving it roughly $800 million short of the $80 billion threshold. An analyst said most of the recent increase came from the UAE, where capital flight—particularly amid turmoil in Dubai’s property market—has driven a surge in local over-the-counter (OTC) demand.