Circle\u2019s USDC added roughly $2 billion in supply during the first quarter of 2026, pulling ahead of rival Tether at a moment when the broader crypto market was contracting. It marked the sharpest divergence between the two largest stablecoin issuers since the bear market of mid-2022.<\/p>\n
While USDC grew, Tether\u2019s USDT<\/a> shed approximately $3 billion over the same period. Reports indicate USDC has been gaining traction in trading and on-chain transactions, with transfer activity hitting a record high in February. The shift aligns with growing institutional preference for a US-regulated issuer as Congress moves closer to passing stablecoin legislation.<\/p>\n Total stablecoin supply reached $315 billion by the end of March, up about $8 billion from the prior quarter, according to CEX.io data<\/a>. Growth was slower than at any point since late 2023, but it was still growth \u2014 at a time when most other corners of the crypto market were shrinking.<\/p>\n Stablecoins also captured 75% of all crypto trading volume in Q1, the highest share ever recorded. Data shows investors rotated into dollar-pegged assets as a defensive move, choosing to stay inside the crypto ecosystem rather than exit it entirely.<\/p>\n Total stablecoin transaction volume for the quarter topped $28 trillion, extending a run that has seen stablecoins<\/a> process more value annually than Visa and Mastercard combined.<\/p>\n A significant portion of fresh issuance came not from USDC or USDT, but from yield-bearing stablecoins \u2014 products that pay returns similar to interest-bearing accounts.<\/p>\n That segment is now valued at around $3.7 billion, with daily trading volumes exceeding $100 million, based on CoinGecko data.<\/p>\nYield-Bearing Products Fuel New Supply<\/h2>\n