Stablecoins cemented their role as mainstream payment rails in 2025, with annual trading volume exploding to $33 trillion—a 72% jump from the previous year, according to Bloomberg and Artemis Analytics.
USDC's turnover rate flips the script: $18.3T in volume vs $76B market cap
In market cap, Tether still dominates: $187 billion, a 60% share. But on-chain activity tells a different story. USDC recorded $18.3 trillion in trading volume, capturing 55% of the stablecoin market. Its market cap of only $76 billion—half of USDT's—didn't stop it from becoming the settlement leader, thanks to high velocity and institutional preference.
The GENIUS Act and a ratings downgrade shift the tide
The key driver was the U.S. GENIUS Act, the first federal stablecoin framework requiring issuers to hold equivalent cash and Treasury reserves. USDC, fully backed, won integrations with Visa, Mastercard, and BlackRock for cross-border settlements. Meanwhile, S&P downgraded USDT's peg stability rating, citing risk assets like Bitcoin in its reserves. Institutional money responded by rushing into USDC.
The growth gap underscores the shift: USDC's market cap expanded 73% in 2025, versus USDT's 36%. While Tether still leads in absolute value, regulatory clarity and real-world use cases are redrawing the stablecoin map.