USDT Remains the Dominant Stablecoin, but USDC's Rapid Growth is Turning Heads

Stablecoins have experienced an exponential rise over the past few months, with Tether's USDT maintaining its position as the market leader.

Stablecoins have experienced an exponential rise over the past few months, with Tether’s USDT maintaining its position as the market leader. However, Circle’s USDC, although relatively new, has rapidly gained market share.

Both stablecoins have witnessed a steady increase in market capitalization since mid-2024. As of April 2025, Tether’s flagship cryptocurrency, USDT, has maintained its market capitalization at approximately $144.55 billion.

According to a recent report by Matrixport, the total market capitalization of Tether has remained relatively stagnant over the last year.

According to the latest data from Circle, USDC’s market capitalization has reached $60.55 billion in April 2025.

In an X post on Tuesday, Matrixport unveiled that Tether's market capitalization has remained relatively stagnant over the last year, achieving roughly $144.55 billion as of April 2025. Notably, Tether is considered the most popular stablecoin since it offers investors a reliable way to avoid market volatility. With his large market cap, it shows the trust that users have placed in USDT as a stable cryptocurrency.

USDC's Rapid Growth

Meanwhile, Circle's USDC has increased its market capitalization to $60.55 billion as of April 2025. USDC has maintained the gradual rise by displaying stronger growth during late 2024. The increased adoption rate of USDC demonstrates why it has become a popular digital asset among institutional investors.

Tether remains the dominant stablecoin by market cap, while USDC is growing at a very steady rate. The increase in USDC's market capitalization is due to the increased use of the stablecoin and the increased confidence in Circle, which backs the cryptocurrency. This growth originates from the broader growth of decentralised finance (DeFi), which uses USDC as an essential mode of trading and funds.

Related: Tether's Pitch To DC: We Help Keep US Dollar Strong Globally

While the overall stablecoin inflows remain stable, they are also consistently increasing, indicating that the crypto market is far from stagnation. Though the growth is not sufficient to ignite a large-scale altcoin rally, it suggests strong underlying momentum in the digital asset space.

The increase in stablecoin deposits also happened during the latest volatility and correction in traditional equities and bonds, signaling that crypto is slowly decoupling from other financial markets. Despite recessionary circumstances, digital assets continue to attract interest as viable investment options.

Amid ongoing global discussions over tariffs and trade barriers, the perspective on the stablecoin market appears more favorable. Both Tether and Circle are well-positioned to benefit from the overarching growth of the cryptocurrency sector and the escalating demand for stable digital assets.

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