USDC Tops USDT in 2024 Transaction Volume: Visa Report

As a researcher with extensive experience in the cryptocurrency market, I find the recent shift in transaction volume trends between Circle Internet Financial’s USDC and Tether’s USDT intriguing. The data presented by Visa and Allium Labs reveals an impressive $456 billion weekly transaction volume for USDC compared to USDT’s $89 billion. This stark contrast challenges the long-held belief that USDT has been the uncontested leader in the stablecoin market.

As an analyst, I’ve observed a significant shift in the transaction volumes of Circle Internet Financial’s USD Coin (USDC) and Tether’s US Dollar Token (USDT) this year. Based on recent data from Visa and Allium Labs, last week alone, USDC recorded an impressive transaction volume of $456 billion, whereas USDT managed only $89 billion. This disparity underscores the growing preference for USDC in the digital currency market.

As a crypto investor, I appreciate the transparency of this new dashboard feature that adjusts for any artificially inflated numbers or non-genuine market activities. By doing so, it offers a more authentic and unobstructed view into the true workings of the cryptocurrency market.

Though USDT dominates the market with a 68% circulation share over USDC’s 20%, according to DefiLlama, an unexpected shift occurred since January 2024. USDC accounted for half of all stablecoin transactions during this period, challenging the long-held belief that USDT has consistently been the undisputed market leader in terms of transaction volume.

After the financial issues surrounding Circle and Silicon Valley Bank last year caused USDC’s circulation to drop to $23 billion, it has since recovered to $32.8 billion. As a significant player in the cryptocurrency market, USDC is instrumental in facilitating large financial transactions. However, Visa’s Crypto Chief, Cuy Sheffield, points out the complexities of evaluating stablecoin transactions. By excluding bot-driven activities, there is a noticeable decrease in transaction volume, making it difficult to accurately measure the economic activity within this sector.

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2024-04-29 18:13