The stablecoin ecosystem witnessed a historic shift in February, with total monthly transaction volume soaring to a record $1.8 trillion. More strikingly, data reveals that Circle’s USD Coin (USDC) consistently surpassed Tether’s USDt (USDT) in transfer volume over the month, a reversal of the long-standing hierarchy driven by market capitalization.
USDC’s Transaction Volume Overtakes Tether’s
According to analytics firm Allium, the aggregate transfer volume across all stablecoins hit the $1.8 trillion milestone in February. Within this, USDC’s transaction volume alone reached $1.26 trillion—a new high for the asset since its 2018 launch. This figure more than doubled USDT’s $514 billion in transfer volume for the same period.
This trend is particularly notable because USDC’s market capitalization ($77.4 billion) remains less than half of USDT’s ($184 billion). Simon Dedic, founder of Moonrock Capital, highlighted this “surprise” on social media, noting that USDC has “consistently flipped” Tether in transfer volume in recent months.
The divergence points to a potential shift in how stablecoins are used. While market cap reflects the total value issued, transaction volume measures active settlement and payment activity. A higher volume relative to supply suggests USDC is being transacted more frequently, possibly indicating stronger utility in payments, remittances, and decentralized finance (DeFi) operations.
Circle’s Aggressive Minting Accelerates Supply Growth
Part of USDC’s momentum stems from Circle Internet Fina ncial’s active minting. Arkham Intelligence reported that Circle minted over $3 billion in new USDC in the first week of March 2026 alone, including a $250 million issuance on the Solana blockchain. If this pace continues, monthly minting could exceed $12 billion.
This expansion follows Circle’s strong Q4 2025 earnings report, which credited growth in USDC’s business and its expanding payments infrastructure. The sustained minting suggests robust institutional and corporate demand for USDC, potentially driven by its perceived regulatory clarity compared to other stablecoins.
Rising Exchange Supply Fuels Market Recovery Hopes
Beyond raw volume, the location of stablecoin supply is sending a bullish signal. The Stablecoin Supply Ratio (SSR)—which compares Bitcoin’s market cap to the total stablecoin market cap—is “steadily recovering” after a February drop, according to CryptoQuant analyst Sunny Mom. A rising SSR indicates that stablecoin buying power relative to Bitcoin is returning.
This aligns with on-chain data showing stablecoin balances on crypto exchanges climbing to a three-week high of $66.5 billion in early March. On March 5 alone, nearly $5.14 billion in stablecoins flowed into exchanges, up significantly from $1.14 billion on March 1.
Historically, increased stablecoin reserves on trading platforms precede upward price momentum for Bitcoin and other major cryptocurrencies. This liquidity acts as “dry powder” for traders, enabling quicker entry into spot markets and often signaling the start of a new bullish phase.
What This Means for Crypto Markets
The confluence of record transaction volume, a leader shift toward USDC, and growing exchange reserves paints a picture of a maturing stablecoin sector with deepening liquidity. For market observers, the key takeaways are clear:
- Stablecoin activity is not just growing—it’s hitting all-time highs, with February marking a new monthly record of $1.8 trillion.
- USDC’s transaction dominance, despite a smaller market cap, suggests it is becoming the preferred medium for active on-chain settlement.
- The influx of stablecoins onto exchanges is rebuilding buying power, a historically positive precursor for Bitcoin price appreciation.
While past performance doesn’t guarantee future results, the current data suggests the market is positioning itself for a potential uptrend, backed by tangible on-chain liquidity metrics rather than mere speculation.
This article is for informational purposes only and does not contain investment advice. Trading cryptocurrencies involves significant risk. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions. While we strive for accuracy, Cointelegraph does not guarantee the completeness or reliability of the information presented. Past performance is not indicative of future results.
