Stablecoins reached an all-time high in monthly transaction volume in February, as Circle’s USDC flipped Tether’s USDT in transfer activity, new data shows.
Key takeaways:
– Stablecoin monthly transaction volume reached a record $1.8 trillion in February.
– USDC comprised 70% of all stablecoin volume.
– Rising stablecoin supply on exchanges puts crypto markets in a better position to recover.
USDC “consistently” flips USDT transfer volume
Stablecoin transfer volume hit $1.8 trillion in February, according to data from Allium. USDC transactions totaled about $1.26 trillion, a milestone for the second-largest stablecoin by market cap since its 2018 launch. USDT transfer volume was $514 billion in February.
Moonrock Capital founder Simon Dedic said USDC has “consistently flipped” Tether in transfer volume over recent months. That higher usage is notable given USDC’s market cap of $77.4 billion is less than half of USDT’s $184 billion. USDC supply has been growing faster than USDT’s in recent weeks; market intelligence firm Arkham reported over $3 billion in new USDC minted already in March, while USDT’s supply remained relatively flat.
Arkham highlighted a $250 million USDC mint on Solana and said Circle minted over $3 billion in the first week of March, suggesting the pace could result in more than $12 billion minted by month-end if it continues.
Circle’s issuer, Circle Internet Financial, reported strong Q4/2025 earnings attributed to rapid growth in USDC-related business and expanding payments operations.
More stablecoin liquidity suggests “buying power”
The Stablecoin Supply Ratio (SSR)—Bitcoin’s market cap relative to stablecoin market cap—has been steadily recovering after a February crash, CryptoQuant analyst Sunny Mom said, adding: “This shows buying power is returning to the market.”
Bitcoin’s recent push toward $74,000 was supported by a recovery in stablecoin supply on exchanges, which rose to a three-week high of $66.5 billion. Stablecoin inflows to exchanges have also accelerated: on March 5 the total transferred to exchanges was nearly $5.14 billion, up from $1.14 billion on March 1.
More stablecoins on exchanges means more buying power for cryptocurrencies. Historically, the return of sidelined capital to exchanges has been a major catalyst for the start of Bitcoin bull markets.
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