Is USDC Beating USDT in the Stablecoin Race? Looking at Recent Findings

In a space long dominated by Tether (USDT), its rival USD Coin (USDC) is now stepping into the spotlight with a bold surge in supply and growing support from institutional players. 

As crypto matures and regulatory scrutiny increases, the race between USDC and USDT is turning into more than just a popularity contest. It’s becoming a case study in trust, transparency, and real-world use.

USDC Surges Past $61 Billion in Supply

According to the latest data, USDC’s total circulating supply hit $61 billion as of April 19, 2025. That marks an impressive 38.6% growth since January—up by $17 billion in just four months. 

This leap is significant, especially when compared to the overall stablecoin market, which now sits at a $226 billion total supply.

What’s behind this rapid rise? Much of it boils down to one key factor: institutional demand. 

From hedge funds to fintech firms, more traditional financial players are choosing USDC as their preferred stablecoin, citing better transparency and stronger regulatory alignment as key reasons.

Read also: Understanding USDR, A MiCA-Compliant Stablecoin for the EU Market

Ethereum Leads, But Other Networks Follow

Most of the stablecoin action still happens on Ethereum, which hosts a whopping $130 billion in supply. While TRON and Solana also see significant activity, they remain secondary to Ethereum’s dominance.

Still, the landscape is changing. As more blockchains become compatible with stablecoins like USDC, we may see a diversification in where and how these assets are used—especially as decentralized finance (DeFi) protocols and crypto payment networks expand.

Why Institutions Prefer USDC Over USDT

The issuer of USDC, Circle, has made a name for itself by embracing regulatory compliance and offering transparency in reserve backing—a major point of differentiation from Tether. 

This approach appeals to institutional investors, especially in U.S. and European markets, who are cautious about compliance and regulatory risk.

With Circle pushing forward on plans for an Initial Public Offering (IPO), its image as a “regulated and reliable” issuer only strengthens. 

This positions USDC as a gateway between traditional finance and digital assets, allowing companies to move money on-chain without sacrificing oversight or compliance.

Read also: Don't Sleep on Stablecoin! How This Sector of Crypto Can be the Next Profitable Narrative

Tether Still Leads, But Growth Slows

Of course, USDT remains the largest stablecoin by market cap. Tether’s supply increased from $138 billion to $145 billion in the same timeframe. But when you compare that 5% growth to USDC’s nearly 39%, the difference is hard to ignore.

Despite its massive footprint, Tether’s slower pace hints at changing market sentiment. While it continues to serve the needs of millions of retail users and exchanges, especially in Asia and emerging markets, USDT’s more opaque reserve practices may be turning off institutional users looking for clearer reporting and regulatory alignment.

FAQs

What is the difference between USDT and USDC?

USDT (Tether) and USDC (USD Coin) are both stablecoins pegged to the US dollar. However, USDC is seen as more transparent and regulated, while USDT has a larger market share but faces scrutiny over its reserve disclosures.

Why is USDC gaining popularity in 2025?

USDC is seeing strong growth due to rising institutional demand, Circle’s regulatory compliance, and its transparent reserve management, making it more attractive to traditional financial players.

Is USDT still the largest stablecoin?

Yes, USDT remains the largest in terms of total supply. But its growth rate is slower compared to USDC, suggesting a shift in market preference.

Can I easily convert USDT to USDC?

Absolutely. Most major crypto exchanges support easy swaps between USDT and USDC, usually at a 1:1 exchange rate.

Will USDC overtake USDT in the future?

It’s possible, especially if institutional adoption continues to rise and regulatory clarity becomes a major factor in choosing a stablecoin.