The total supply of stablecoins reached a record high of $315 billion in the first quarter of 2026, an increase of almost $8 billion quarter-over-quarter, despite a contraction in the broader cryptocurrency market.
But this total figure hides a more interesting story: a currency USDC acquires a share USDTThe gap is closing faster than most market participants expected.
Supplies surged USDC has grown 220% since the end of 2023 to approximately $78 billion, thanks to B2B settlements, payroll infrastructure and software payment channels built by the two companies. Visa AndBand.
On the other hand, I witnessed USDTwhich remains the dominant source in terms of crude supply, has seen its market share decline; It is a contrast described by the platform CEX.IO This is one of the most notable market dynamics identified for this quarter.
- The total supply of stablecoins reached an all-time high of $315 billion in the first quarter of 2026, up approximately $8 billion from the previous quarter.
- Stablecoins accounted for 75% of total cryptocurrency trading volume, the highest share ever recorded.
- Stablecoin trading volume has exceeded $28 trillion, surpassing… Visa AndMasterCard Combined.
- supply increased USDC By 220% since the end of 2023 to reach ~$78 billion, while the share of… USDT Logistics.
- Retail conversions fell 16%, the biggest drop on record, while bots (automated trading software) generated around 76% of trading volume.
- Yield-generating stablecoins are now a $3.7 billion subsector, posing new regulatory risks.
Stablecoins also accounted for 75% of total cryptocurrency trading volume in the first quarter, while total trading volume exceeded $28 trillion, a figure that regularly outpaces major payment networks such as Visa AndMasterCard Combined. Slowing growth is a reality, but evaporating demand is not.
The rise of USDC is about regulation, not just market share
It’s a boom USDC This is not the result of spontaneous adoption by individuals, but rather indicates data CEX.IO Programmatic institutional funds – such as corporate settlement pathways and cash management – are the main driver.
Transaction turnover speed achieved USDC Around 90 times the average transfer amount of $557, a profile consistent with frequent small institutional transactions rather than “whale” movements.
It was a corporate positioning Circle Proactively ahead of potential US stablecoin legislation. As debate continues over the Clarity for Payments Stablecoins Act and regulatory frameworks evolve in Washington, regulated issuers such as Circle A structural advantage to attract compliance-sensitive institutional capital.
Analysts have clearly described this shift: “This is not about individual adoption; this is institutional money when it comes to software. » The number that backs it up is the average conversion volume USDC $557, which seems low compared to the deals USDT greater individualism, but highlights high-frequency automated institutional flows that reflect broader trends in securitization.
If US legislation is passed with provisions favoring regulated and audited exporters, it will be a win-win. USDC Structurally and definitively. If legislation fails, competitive advantage will narrow and be restored USDT Its dominance is due to its solid liquidity depth.
USDT still leads… but the competitive gap is narrowing
He’s staying USDT The largest stablecoin in terms of supply and the dominant liquidity instrument in emerging markets and network-based DeFi corridors Tron.
It focuses on the network Tronwhere low fees drive individual and cross-border transfer volumes, give it a user base it can’t compete with USDC Ethereum-based and enterprise-oriented, at least for now.
However, the share has decreased USDT The first quarter coincided with the largest recorded decline in personal remittances (of 16%), thus affecting one of the currency’s main use cases.
At the same time, bots now account for around 76% of total stablecoin trading volume, signifying organic demand from individuals, which has consolidated the dominance of USDT In small high frequency conversions it shrinks.
She emphasized CEX.IO This reflects a “more developed, but perhaps less organic, market structure.”
Company response was limited Attached On quarterly reserve certifications and geographic expansion rather than product-level innovation. This is an acceptable defensive position as long as network effects are maintained, but it may become a weak point if institutional capital continues to shift to structured instruments and integration deepens. USDC Software in Western payment architecture.
May reports will be for the company Circle And the company’s second quarter report Attached It is essential to monitor whether supply gaps will widen. If you exceed USDC The $90 billion barrier has stabilized USDTThe change in action this quarter will not just be a passing boom, but rather the start of a new long-term trend.
The article Record Cryptocurrency Stability: USDC Continues USDT Dominance appeared first on Cryptonews Arabic.
