Circle’s USDC appears to be pulling ahead of Tether’s USDT in stablecoin transaction volume, based on data tracked through Visa’s on-chain analytics dashboard, signaling a potential shift in how the two dominant stablecoins are used for payments and settlements.
What Visa’s on-chain dashboard reveals about USDC and Tether
Visa’s on-chain analytics platform tracks stablecoin transaction activity across major blockchains, offering a filtered view of volume that attempts to strip out bot activity and wash transfers. On this adjusted basis, USDC has shown stronger transaction flow than USDT. For related coverage, see Ripple Secures MiCA License to Offer Crypto Services Across Europe.
The distinction matters because raw volume figures, which include automated arbitrage and exchange-internal transfers, can paint a misleading picture. Visa’s methodology focuses on what it considers genuine economic activity, and by that measure, USDC leads. For related coverage, see Ripple Secures MiCA CASP Authorization for Europe.
This is not the first time adjusted metrics have favored USDC. Earlier reporting on the topic found that USDC overtook USDT on adjusted volume as institutions pivoted toward the Circle-issued stablecoin, a trend that Visa’s data now reinforces.
Why USDC may be gaining ground in transaction flow
Several factors could explain USDC’s stronger showing in payment-oriented volume. Circle has positioned USDC as a compliance-first stablecoin, publishing regular reserve attestations and operating under U.S. regulatory frameworks. That positioning appeals to institutional users and payment processors that need auditability.
Visa itself has been actively exploring stablecoin infrastructure. The payments giant has tested private stablecoin settlement with partners including Brale and Canton, suggesting that traditional finance rails are increasingly integrating with on-chain settlement layers where USDC has built traction.
Tether’s USDT still commands a larger total market capitalization and dominates trading pair liquidity on centralized exchanges. Volume leadership in adjusted transaction data does not translate directly into overall market dominance, and the two metrics measure different things.
Exchange trading flow, where USDT remains the default quote currency on most platforms, is distinct from payment and settlement activity. USDC’s advantage appears concentrated in the latter category, particularly on Ethereum and its Layer 2 networks.
What the USDC versus Tether shift means for the stablecoin market
The broader stablecoin market has grown substantially, with total supply tracked across chains available through aggregators like DefiLlama’s stablecoin tracker. Within that expanding market, the competition between Circle and Tether increasingly splits along use-case lines rather than raw size.
For market participants, the volume shift matters because it reflects where real economic activity is flowing. A stablecoin that leads in payment and settlement volume may attract more integration partnerships, further reinforcing its position in that segment. The broader question of whether stablecoin transaction volume in 2026 rivals traditional card networks like Visa and Mastercard adds further context to why these metrics are closely watched.
Investors and builders should monitor whether USDC’s adjusted volume lead widens or narrows in coming quarters. Key metrics to watch include Visa’s on-chain dashboard updates, changes in stablecoin supply distribution, and institutional adoption announcements from either issuer.
Neither stablecoin has “won” the market. Tether retains clear dominance in exchange liquidity and emerging-market adoption, while USDC’s strength in regulated payment corridors represents a different, and potentially equally valuable, segment of the stablecoin economy.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
