Circle’s USDC expands faster than Tether’s USDT as institutional adoption and regulatory support increase
Circle Internet’s USDC stablecoin has outpaced rival Tether’s USDT for the second consecutive year, reflecting strong demand for regulated, blockchain-based dollars. The growth follows supportive regulatory developments in the U.S., including the GENUIS Act, which provides a framework for payment stablecoins and enhances institutional trust.
In 2025, USDC’s market capitalization rose 73% to $75.12 billion, while USDT grew 36% to $186.6 billion. In 2024, USDC increased by 77% compared with USDT’s 50%, highlighting Circle’s continued momentum. The growth is primarily attributed to institutional adoption and integration with major financial firms such as Visa, Mastercard, and BlackRock.
USDC’s transparent reserve management, regular audits, and compliance with regulations such as MiCA in Europe make it the preferred choice for institutions. In contrast, Tether remains largely unregulated in the U.S. and Europe, which limits its appeal among regulated entities.
Together, USDC and USDT account for over 80% of the $312 billion stablecoin market, demonstrating their dominance. Analysts predict the stablecoin market could reach $3.7 trillion by 2030, with regulated options like USDC likely to drive growth.
USDC’s consistent outperformance over USDT underscores the shift toward regulated, institution-friendly stablecoins, reflecting a broader trend in digital asset adoption and the evolving role of compliance in driving market confidence.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.