USDC Surpasses Tether

According to a recent report from JPMorgan, the stablecoin USDC, issued by Circle, has for the first time surpassed Tether (USDT) in terms of blockchain activity. This marks a clear sign that the market is beginning to favor assets that meet growing regulatory standards.

JPMorgan notes that USDC’s market capitalization has surged by 72% this year, reaching $74 billion. By comparison, USDT’s market cap increased by 32%. While Tether remains the world’s largest stablecoin — with a total valuation more than twice that of USDC — the difference in growth rates highlights a shift in the direction the crypto industry is heading.

A major factor driving this change is the introduction of new regulations, particularly Europe’s MiCA (Markets in Crypto-Assets) framework, which came into effect in mid-2024. MiCA established clear rules for the issuance and oversight of stablecoins, boosting confidence among financial institutions and investors alike.

Due to the lack of MiCA-compliant authorization, USDT has been delisted from several European exchanges. Meanwhile, USDC, with its transparent reserve structure and regular audits, has gained favor among institutional users and compliance-focused companies.

JPMorgan also points out that USDC’s network activity has grown rapidly thanks to its expansion on Solana and Base, two blockchains increasingly used in decentralized finance (DeFi). Additional momentum came from partnerships with major players such as Visa, Mastercard, and Stripe, as well as Circle’s implementation of the Cross-Chain Transfer Protocol, which enables fast and low-cost payments across multiple blockchains.

While USDT still dominates emerging markets and remains the primary trading pair on many exchanges, JPMorgan believes that USDC’s regulatory model could become the global standard for the next generation of stablecoins — potentially threatening Tether’s long-standing dominance in the market.