USDC Surpasses Tether as Volume Hits $1.8T

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USDC Surpasses Tether in Monthly Transfer Volume – Stablecoin Activity Reaches $1.8 Trillion Record

Key Takeaways

Stablecoin monthly transfer volume reached a record $1.8 trillion in February.
USDC accounted for $1.26 trillion, or 70 percent of total stablecoin transaction volume.
Tether’s USDt recorded $514 billion in transfer volume during the same period.
More than $3 billion in new USDC was minted in the first week of March.
Stablecoin supply on exchanges rose to $66.5 billion, coinciding with Bitcoin’s move toward $74,000.

Stablecoin Transfer Volume Hits All Time High in February

Stablecoin transaction activity reached a new monthly record in February, with total transfer volume climbing to $1.8 trillion, according to data from Allium. The figure represents the highest monthly level recorded for stablecoins, which are cryptocurrencies designed to maintain a stable value, typically pegged to fiat currencies such as the US dollar.

Stablecoins operate across multiple blockchains and are widely used for trading, settlement and transferring value within the digital asset ecosystem. The February data highlights a sharp increase in onchain movement of these dollar-pegged tokens.

The record volume reflects aggregate transfers across major stablecoins, with two issuers accounting for the majority of activity: Circle’s USDC and Tether’s USDt.

USDC Accounts for 70 Percent of Monthly Stablecoin Volume

USDC recorded $1.26 trillion in transfer volume in February, representing 70 percent of all stablecoin transactions during the month. This marks a new milestone for the second largest stablecoin by market capitalization since its launch in September 2018.

By comparison, Tether’s USDt registered $514 billion in transfer volume over the same period. Despite USDt maintaining a significantly larger market capitalization, USDC has overtaken it in terms of transactional activity.

USDC currently has a market capitalization of $77.4 billion, while USDt stands at $184 billion. The divergence between market capitalization and transfer volume indicates that USDC is being moved onchain more frequently relative to its size.

According to Simon Dedic, founder at Moonrock Capital, USDC has consistently surpassed USDt in transfer volume over the past few months. The February data continues that trend and underscores a shift in transactional dominance, even though USDt remains the larger asset by total supply.

USDC Supply Expands as New Tokens Are Minted

Recent issuance data points to accelerated growth in USDC supply. Market intelligence firm Arkham reported that more than $3 billion in new USDC was minted in the first week of March alone. During the same period, USDt supply remained relatively unchanged.

One reported mint included $250 million in USDC issued on the Solana blockchain. The continued expansion of circulating supply corresponds with the elevated transfer activity recorded in February.

Circle Internet Group, the issuer of USDC, previously reported strong earnings for the fourth quarter of 2025. The company attributed its performance to rapid growth in USDC-related business and expanding payments operations. While detailed financial figures were not disclosed in the available data, the earnings report aligns with the observed increase in usage and supply.

Rising Stablecoin Supply Signals Increased Market Liquidity

Beyond individual token performance, aggregate stablecoin data indicates a broader rise in market liquidity. The Stablecoin Supply Ratio, or SSR, which measures the ratio between Bitcoin’s market capitalization and the total stablecoin market capitalization, has been steadily recovering after declining in February, according to CryptoQuant analyst Sunny Mom.

A lower SSR generally reflects higher relative stablecoin supply compared to Bitcoin’s market value, which can indicate greater available capital for crypto purchases. The recent recovery in the ratio coincided with increased stablecoin inflows to exchanges.

On March 5, approximately $5.14 billion in stablecoins were transferred to exchanges, compared with $1.14 billion on March 1. By Friday of the same week, total stablecoin supply held on exchanges had risen to $66.5 billion, a three week high.

The increase in exchange balances occurred alongside Bitcoin’s latest move toward $74,000. Historically, higher stablecoin balances on exchanges have provided additional buying power for cryptocurrencies, as these tokens are frequently used as base trading pairs.

Implications for Crypto Markets and Platform Users

For market participants, including users of crypto trading and betting platforms that rely on stablecoin liquidity, the shift in transfer volume highlights changes in how capital moves across the ecosystem. USDC’s higher transaction share suggests that it is currently playing a central role in onchain settlement and exchange activity.

The rise in total stablecoin volume and exchange balances also reflects renewed capital movement within the crypto market. Stablecoins often serve as an entry point for trading, hedging and transferring funds between platforms. Higher transactional activity can therefore influence liquidity conditions across exchanges and services that accept crypto payments.

At the same time, the data shows that market capitalization alone does not determine transactional dominance. Although USDt remains the largest stablecoin by supply, USDC led in actual transfer volume during the latest reporting period.

Our Assessment

February marked a record month for stablecoin activity, with $1.8 trillion in total transfer volume. USDC accounted for the majority of that activity, surpassing USDt despite having a smaller market capitalization. At the same time, new USDC issuance and rising stablecoin balances on exchanges coincided with Bitcoin’s move toward $74,000. The data indicates increased onchain activity and higher stablecoin liquidity within the crypto market.