USDC Leads Transaction Volume While USDT Still Dominates Market Cap

The duel between the two largest stablecoins in the market has just taken an unexpected turn. According to a report from investment bank Mizuho, Circle’s USDC has surpassed Tether’s USDT in adjusted volume since the start of the year, a key indicator for measuring the actual usage of these currencies. This shift does not yet challenge Tether’s dominance in capitalization, but it reveals an evolution in how these assets are used. The stablecoin market is now divided between financial power and actual usage.

USDC surpasses USDT in adjusted transaction volume

While charitable organizations massively adopt stablecoins, a report from investment bank Mizuho reveals a notable change in the stablecoin dynamics. According to analysts, Circle’s USDC has surpassed Tether’s USDT in adjusted transaction volume since the start of the year.

The study indicates that “USDC represents about 64 % of the total adjusted volume among the two main stablecoins”. This result is based on a methodology designed to measure real economic activity on blockchains.

The main data highlighted in the analysis are as follows :

• USDC : about 2.2 trillion dollars in adjusted volume since the start of the year ;
• USDT : about 1.3 trillion dollars over the same period ;
• 64 % volume share for USDC ;
• Volumes adjusted to exclude certain internal or artificially inflated transactions.

This approach aims to offer a more accurate view of the actual use of stablecoins in the crypto ecosystem. Adjusted volume allows isolating transfers linked to economic activity (payments, transfers, or financial operations) by removing movements likely to distort statistics.

Persistent dominance of Tether in capitalization

Despite this lead in transaction volume, USDT retains a dominant position in the stablecoin market in terms of capitalization. The on-chain data cited in the analysis indicate that Tether has a capitalization of about 184 billion dollars, versus about 79 billion for USDC. This difference illustrates the historic weight of Tether in the crypto ecosystem, notably on exchange platforms and in emerging markets.

Mizuho analysts highlight an important distinction between these two indicators. According to them, “the stablecoin that will dominate might be the one used in daily payments, not necessarily the one with the largest capitalization”. This observation underscores the growing importance of actual usage in evaluating stablecoins’ position.

In this context, the bank also raised its price target for Circle stock from 100 to 120 dollars, a sign of renewed confidence in the USDC issuer’s business model. However, the stock did not immediately react to this announcement.

If this trend confirms, it could signal a deeper evolution of the stablecoins market. The balance between market liquidity, institutional adoption, and usage in payments could gradually redraw the sector’s hierarchy. For now, the duel between USDC and USDT remains open, with two different metrics each telling part of the story.