Stablecoin Market Soars: USDC Dominates with 70% of $1.8 Trillion Volume

Stablecoin

In the first week of March, a staggering amount of USDC was minted, with expectations that Circle could exceed $12 billion in new USDC by the month's end. This significant increase is part of a larger trend, as total stablecoin transfer volume reached an unprecedented $1.8 trillion in February, marking the highest monthly total recorded.

USDC Surpasses Tether Significantly

USDC, created by Circle Internet Group, accounted for approximately 70% of all stablecoin transactions last month, amounting to about $1.26 trillion. In contrast, Tether’s USDT recorded $514 billion during the same timeframe. This surprising gap has caught the attention of analysts, especially considering Tether has a larger market capitalization—$184 billion compared to USDC’s $77.4 billion. Simon Dedic, founder of Moonrock Capital, observed that USDC has "consistently flipped" Tether regarding transfer volume recently, indicating that each dollar of USDC is being used much more frequently than each dollar of USDT.

Stablecoin transaction volume. Source: Allium

According to data from blockchain analytics firm Allium, these figures for February are confirmed. Circle has seen rapid growth, resulting in strong earnings for the fourth quarter of 2025, largely due to the swift expansion of USDC's payment services. Partnerships with platforms like Polymarket have fueled this growth while Tether's supply has remained relatively unchanged as of early March, showcasing USDC's relentless minting.

Implications of Increasing Stablecoin Supply for the Market

An increase in the number of stablecoins on exchanges generally indicates more ready capital for purchasing cryptocurrencies. On March 5, approximately $5.14 billion in stablecoins entered exchanges, a considerable rise from the $1.14 billion reported just four days prior on March 1.

Total crypto market cap at $2.3 trillion on the daily chart: TradingView

By Friday, total stablecoin supply on exchanges hit a three-week high of $66.5 billion. Historical trends show that substantial increases in stablecoin supply on exchanges often precede price surges in the crypto market as dormant capital is reinvested. Bitcoin briefly approached $74,000 this week, partially attributed to the influx of stablecoins. Additionally, the Stablecoin Supply Ratio—which compares Bitcoin’s market capitalization to the overall stablecoin market cap—has been recovering following a significant decline in February.

CIRCLE JUST MINTED $250M $USDC

Circle has minted another $250 million in USDC on Solana, totaling over $3 billion in the first week of March alone. If they maintain this rate, they could mint over $12 billion in USDC by the month's end.

— Arkham (@arkham) March 7, 2026

Further growth in USDC

The February milestone signifies more than just USDC's success; overall stablecoin adoption is rising. Recently, Florida's state senate passed a stablecoin bill that is now waiting for the governor's approval. Regulatory advancements at the state level, along with the increasing use of dollar-backed tokens for payments and settlements among institutions, has helped fuel this growing demand. USDC's impressive $1.26 trillion in transfers for February marks the highest monthly total since its launch in September 2018, with reports indicating that Circle has already minted over $3 billion in USDC in the first week of March, including a significant mint of $250 million on Solana.

Featured image from Bitkub Academy, chart from TradingView