Stablecoin Market Breaks Records: USDC Dominates 70%

Total stablecoin transfer volume in February 2026 reached a record $1.8 trillion, with Circle's USDC capturing the lion's share — 70% of all volume. This marks a shift in the balance of power on the stablecoin market, where Tether had long maintained its dominant position.

Scale of Growth

February's $1.8 trillion stablecoin transfer volume was the highest in crypto market history. USDC accounted for $1.26 trillion of that total, while Tether's volume reached $514 billion. This gap reflects the growing preference among institutional players who choose USDC for its regulatory transparency.

New Token Issuance

Circle minted over $3 billion in new USDC during the first week of March alone. If this pace continues, monthly issuance could exceed $12 billion. Total USDC in circulation stood at $77.1 billion as of March 5.

Why USDC Wins in Transfers

Despite Tether still leading in market capitalization ($184–187B versus $77B for USDC), the situation with transfer volumes is radically different. Institutional investors and payment platforms increasingly choose USDC due to full regulatory compliance, transparent reserve audits, and partnerships with traditional financial institutions.

Circle's partnership with platforms like Polymarket also contributed to growing transaction volumes, particularly in the prediction markets sector.

Regulatory Environment

Active development of stablecoin regulation at the US state level, combined with growing institutional use of dollar-backed tokens for payments and settlement, continues to drive demand. Circle reported strong financial results for Q4 2025, reflecting the rapid expansion of USDC payment operations.

Bottom Line

The stablecoin market has entered a new growth phase, with USDC becoming the primary instrument for institutional transfers and settlements. While Tether retains its lead in market cap, the transfer trend clearly favors Circle. For the crypto industry overall, this is a positive signal — stablecoin growth typically precedes broader market activation.