Circle’s USDC Overtakes Tether's USDT in Onchain Activity as Regulation Drives Shift: JPMorgan

Why It Matters

The shift underscores that regulatory clarity and compliance are now primary drivers of stablecoin adoption, positioning USDC to reshape the crypto payments landscape and challenge Tether’s long‑standing market dominance.

Summary

JPMorgan reported that Circle’s USDC has surpassed Tether’s USDT in on‑chain activity as investors gravitate toward regulated stablecoins. USDC’s market cap jumped 72% this year to $74 billion, outpacing USDT’s 32% rise, buoyed by compliance with Europe’s MiCA framework and growing institutional use. The on‑chain velocity of USDC surged on networks like Solana and Base and after integrations with Visa, Mastercard and Stripe, while USDT remains dominant in emerging‑market exchanges. JPMorgan suggests USDC’s transparent, audit‑backed model could become the global benchmark for stablecoin growth.