USDC Tops USDT in 2024 Transaction Volume: Visa Report

Circle Internet Financial’s USDC has outpaced Tether’s USDT in transaction volume this year. Data from Visa, in collaboration with Allium Labs, reveals that USDC’s transaction volume reached $456 billion last week, starkly contrasting with USDT’s $89 billion. 

This metric, presented on a newly launched dashboard, adjusts for any distortions due to artificial inflation or non-organic activities, providing a clearer picture of the market dynamics.

Despite USDT holding a 68% market share in terms of coins in circulation compared to USDC’s 20%, as per DefiLlama, USDC has represented half of all stablecoin transactions since January 2024. This change challenges the widely accepted idea that USDT has always been the leading stablecoin in the market.

Following last year’s banking crisis linked to Circle’s dealings with Silicon Valley Bank, USDC’s circulation rebounded from $23 billion to $32.8 billion. As a key component of the cryptocurrency market, USDC facilitates significant financial transactions.

Visa’s Crypto Chief, Cuy Sheffield, also emphasizes the challenge in analyzing stablecoin transactions, noting a significant reduction in volume after excluding bot-driven activities, which highlights the difficulty in gauging the true economic activity in this sector.

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