Explosive Growth: 5 Reasons Why USDC is Closing the Gap on USDT in 2025
USDC’s Record-Breaking Surge: Can It Finally Overtake USDT on Centralized Exchanges?
USDC and USDT remain the undisputed leaders in the stablecoin market. But 2025 has brought a seismic shift: USDC is showing unprecedented growth in trading volume and market share, challenging USDT’s dominance. Here’s what’s driving this explosive trend and whether USDC can dethrone the king of stablecoins.
According to the latest Kaiko Research report, USDC hit a staggering $219 billion in trading volume in April 2025—more than double the $106.5 billion recorded in January 2024. This meteoric rise is largely fueled by a strategic partnership with Binance, the world’s largest crypto exchange.
“This deal is a win-win for both parties. Circle pays over $60 million upfront, plus ongoing incentives, while Binance strengthens its regulatory compliance in Europe.” – Kaiko
Here’s the breakdown: Binance accounted for over 57% of global USDC trading, boosting its market share among stablecoins on the platform from 10% in late 2024 to nearly 20% today. Meanwhile, USDT’s share on Binance dropped from 75% to around 60%.
Why USDC is Gaining Momentum
Two key factors are driving USDC’s growth:
- Strategic Partnerships: The Binance deal gave USDC access to a massive user base, significantly boosting its trading volume.
- Regulatory Appeal: USDC is benefiting from increased demand for regulation-compliant stablecoins, especially in Europe under the MiCA framework.
When comparing monthly volume changes since November 2024, USDC outperformed USDT by a wide margin. While USDT’s volume dropped by 49%, USDC’s surged by 16%.
“USDC is gaining momentum on centralized exchanges, while USDT faces headwinds. The decline in USDT trading reflects weaker retail activity and limited speculation across markets.” – Kaiko
USDT Still Holds the Crown—For Now
Despite USDC’s impressive growth, USDT remains the market leader. As of May 2025, USDT’s market capitalization stands at $152 billion—2.3 times higher than in July 2022. In contrast, USDC’s market cap is $60 billion, just 12% higher than in 2022.
Tether, the company behind USDT, also reported record profits of $13 billion in 2024, cementing its dominance in cross-border payments and decentralized finance (DeFi) applications.
The Future of Stablecoins: A Shifting Landscape
While USDC and USDT dominate today, the stablecoin market is evolving rapidly. Major players like PayPal, BlackRock, and Ripple are entering the space, intensifying competition. The question is: Can USDC maintain its momentum and eventually surpass USDT?
What’s your take? Will USDC overtake USDT, or will USDT continue to reign supreme? Share your thoughts in the comments below!
FAQ
1. What is the difference between USDC and USDT?
USDC is a fully regulated stablecoin backed by cash and short-term U.S. Treasury bonds, while USDT is backed by a mix of reserves, including cash, bonds, and other assets.
2. Why is USDC growing faster than USDT in 2025?
USDC’s growth is driven by strategic partnerships (e.g., Binance) and increasing demand for regulation-compliant stablecoins, especially in Europe.
3. Is USDT still the most popular stablecoin?
Yes, USDT remains the market leader with a $152 billion market cap, but USDC is closing the gap.
4. What is the MiCA framework?
MiCA (Markets in Crypto-Assets) is a regulatory framework in the European Union that sets rules for crypto assets, including stablecoins.
5. Can USDC overtake USDT?
While USDC is growing rapidly, it still has a long way to go to match USDT’s market cap and dominance in DeFi and cross-border payments.
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