USDC Surges Ahead of USDT in Transactions, Signaling Shift in Stablecoin Hierarchy

According to Visa, USDC surpassed USDT in April 2024 in terms of transactions, recording 166.6 million compared to USDT's 163.6 million. This marks USDC's continued challenge to USDT's dominance in the stablecoin market, with USDC first surpassing USDT in December 2023. Despite USDC's growth in transactions, USDT remains the leading stablecoin in terms of market share and active users, with over 34.2 million unique users in April compared to USDC's 9.57 million.

USDC Surges Ahead of USDT in Transactions, Signaling a Shift in Stablecoin Dominance

According to a comprehensive report released by Visa, a prominent payment processor, Circle's USDC stablecoin has surpassed Tether's USDT in transaction volume during the month of April 2024. This marks a significant milestone in the competitive stablecoin landscape, traditionally dominated by USDT.

USDC Gains Momentum, Surpassing USDT in April

Visa's report revealed that USDC recorded an impressive 166.6 million transactions in April, outpacing USDT's 163.6 million transactions. This surge in transaction volume indicates a growing preference for USDC among users and a notable shift in market share away from USDT.

A History of USDC's Ascent

Since late 2023, USDC has been steadily chipping away at USDT's dominance in the stablecoin market. In December 2023, Visa's on-chain analytics showed USDC outpacing USDT in transactions for the first time, with 145 million transactions compared to USDT's 127 million.

USDT Still Leads in Market Share and Active Users

Despite USDC's recent surge in transactions, USDT remains the undisputed market leader in terms of market capitalization and active users. According to data from CoinMarketCap, USDT boasts a market capitalization of over $110 billion, accounting for approximately 69% of the total stablecoin market value. Furthermore, USDT had over 34.2 million unique users in April, significantly higher than USDC's 9.57 million unique users.

Other Stablecoins Gain Traction

Visa's report also shed light on the performance of other stablecoins in April. USDP and PYUSD combined recorded over 352 million transactions worth $2.3 trillion, highlighting the growing importance of stablecoins in the digital asset ecosystem.

Visa's Role in Improving Stablecoin Transparency

Visa's comprehensive data on USDT, USDC, USDP, and PYUSD across nine blockchain networks provides valuable insights for users and market participants. This data aims to enhance transparency and empower users with up-to-date information about these key stablecoins.

Conclusion

The rise of USDC and the recent shift in transaction volume could signal a gradual erosion of USDT's dominance in the stablecoin market. As the use cases for stablecoins continue to expand, the competition among issuers will likely intensify, potentially leading to further innovation and adoption within the cryptocurrency industry.