USDC Overtakes USDT as the Most Popular Stablecoin, Targeting Institutional Users

Ethereum continues to host the majority of stablecoins, with $130 billion in supply, while the rest is distributed across blockchains

Ethereum remains the primary host for stablecoins, with $130 billion in stablecoin supply on the network, while the rest is distributed across other blockchains like TRON and Solana.

Despite USDT maintaining the largest share of the overall market, the faster growth of USDC in 2023 is shifting preferences, especially among institutional users.

The appeal of USDC has been closely linked to regulatory clarity and Circle’s approach to compliance. The company’s transparent reserve practices and commitment to aligning with regulations in the United States and the European Union have made it more attractive to regulated institutions.

Furthermore, institutional confidence has been supported by Circle’s ongoing steps toward a possible initial public offering (IPO).

The exchange rate between USDC and USDT remains closely aligned, which allows users to move between the two tokens without encountering major price discrepancies. However, the difference in supply growth between them has become more pronounced over time.

As reported by DeFi Llama, market participants have shown a preference for USDC on decentralized finance platforms and among entities operating in regulated financial environments.

Circle’s potential IPO has been seen as an effort to strengthen the links between traditional finance and crypto infrastructure. While no date for the IPO has been confirmed, the move reflects Circle’s broader efforts to expand its reach and solidify its position in the stablecoin market.

Although TRON and Solana host portions of the stablecoin supply, Ethereum’s $130 billion share makes it the dominant platform for these assets. The remaining $96 billion is spread across the other blockchains.

While USDT continues to lead in terms of total supply, the growth trajectory of USDC has been sharper in 2023. The combination of institutional demand, regulatory transparency, and infrastructure developments such as Circle’s IPO plans has contributed to this trend.

The stablecoin market is in constant evolution, and preferences among participants are shifting as they evaluate which tokens offer the clearest path to compliance and operational trust. This is evident in the preference for USDC among institutional users and DeFi platforms.

USDC’s growth reflects a broader theme in which regulatory alignment and transparency are playing an increasingly critical role in stablecoin adoption. The market will continue to observe how this shapes future competition between leading stablecoins.