Circle Surges Ahead as Stablecoin Market Shifts Under Regulatory Spotlight

The stablecoin market is undergoing a significant shift, with Circle's USDC gaining momentum in a crucial aspect of its business. While Tether's USDT still dominates in terms of coins outstanding, with around $184 billion in circulation compared to Circle's $73 billion, the actual transaction volume tells a different story.

According to Visa's onchain analytics dashboard, which strips out bot activity and exchange-to-exchange noise, USDC carried roughly 70% of all stablecoin activity in the first half of 2026. This is a stark contrast to six years ago, when USDT handled nearly 90% of adjusted volume.

The difference lies in the fact that transaction volume reflects the trust and usage among institutions, whereas coins outstanding only measures how much money is parked. The GENIUS Act, signed into law in July 2025, has given the United States its first federal framework for payment stablecoins, making it easier for banks to comply with regulations.

Circle's decade-long effort to build a reputable and compliant stablecoin infrastructure has paid off, as major financial institutions like Standard Chartered and BNY have built their stablecoin settlement services on USDC. This shift in market trust is unlikely to reverse, with Circle predicted to carry the outright majority of stablecoin activity by mid-2027.