USDC Market Cap Nears Record $80 Billion as Analyst Points to UAE Capital Flight

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 and USDT are U.S. dollar stablecoins issued by Circle and Tether, respectively. USDT has long led by total market capitalization, while USDC has gained traction in mature markets through reserve transparency and its compliance strategy. Mizuho Securities instead used adjusted transaction volume, excluding high-frequency and duplicate transactions, to identify substantive flows such as payments and institutional transfers and assess whether stablecoins are moving into everyday economic use.

In a report published on March 13, 2026, Mizuho Securities analysts Dan Dolev and Alexander Jenkins said USDC's adjusted transaction volume totaled about $2.2 trillion from the start of 2026 through the report date, compared with about $1.3 trillion for USDT. Their respective shares stood at 64% and 36%, marking the first reversal since 2019. USDC's market capitalization also reached a record $81 billion, although USDT's remained about 2.4 times larger.

USDC is a dollar-pegged stablecoin issued by Circle and used primarily for crypto trading, cross-border payments and onchain settlement. It has long competed with Tether’s USDT. Because transaction volume reflects actual fund flows and usage, USDC taking the lead for the first time since 2019 marks a significant shift in stablecoin adoption.

Monthly stablecoin transaction volume reached an all-time high of $1.8 trillion in February. USDC accounted for 70% of the total at $1.26 trillion, more than twice USDT’s volume. A recent Mizuho report also said USDC had overtaken USDT in adjusted year-to-date volume, prompting a brokerage to raise its price target for Circle.

Circle issues the U.S. dollar stablecoin USDC and derives most of its revenue from income on the cash and U.S. Treasury reserves backing the token. The company went public in June 2025. USDC’s rapid expansion has made Circle’s results an important gauge of stablecoin adoption and the company’s sensitivity to interest rates.

Circle reported fourth-quarter 2025 revenue of $770 million, beating market expectations. USDC in circulation exceeded $75 billion at year-end, up 72% from a year earlier. Although IPO-related stock-based compensation pushed the company to an annual loss, its shares initially rose more than 20% after the results, with the gain later approaching 50%. Bernstein also reiterated its $190 price target.