USDC Dominates Stablecoin Market, Zcash Volatility Fuels Liquidations

USDC continues to dominate the stablecoin market, adding approximately $584 million to its market capitalization in just seven days. This growth contributes to an overall increase of $1 billion shared with Ethena's USDe and PayPal's PYUSD. While USDT remains the largest stablecoin by supply share, holding about 60% of the market, USDC has captured between 60% and 70% of on-chain transaction volumes in various periods during 2026.

The total supply of stablecoins has reached a range between $303 and $310 billion. Of these, USDC represents about $74-77 billion, equivalent to approximately 24% of the total market. Circle's regulated infrastructure, with periodic attestations and cash and short-term Treasury reserves, is becoming the preferred standard for everyday payments and transactions.

In contrast, Zcash volatility has fueled large crypto liquidations, with a price increase near decade highs. Grayscale's spot ETF ZCSH launch appears to be a significant factor behind this rally, generating sustained buying pressure in the spot market that squeezed leveraged short positions accumulated during the post-vulnerability pessimism.