Stablecoin activity surged to a new monthly record in February, with transfer volumes reaching $1.8 trillion. The biggest surprise came from Circle’s USDC, which accounted for roughly 70% of the total and surpassed Tether’s USDT in transaction volume despite having a far smaller market capitalization. The shift signals changing usage patterns across crypto markets and hints at growing liquidity returning to the ecosystem.
USDC dominates stablecoin transaction activity
Data from blockchain analytics firm Allium shows stablecoin transfer volume climbed to $1.8 trillion in February, the highest monthly figure on record. Stablecoins, which are designed to maintain a fixed value—usually pegged to the US dollar—are widely used across crypto trading, payments, and decentralized finance.
USDC led the surge. The dollar-pegged token recorded $1.26 trillion in transfer volume during the month, more than double the $514 billion processed through Tether’s USDT. The milestone highlights a sharp rise in the use of USDC across blockchain networks.
A surprising flip despite Tether’s market lead
The shift has raised eyebrows among market watchers. USDC’s market capitalization sits at about $77.4 billion, less than half of Tether’s roughly $184 billion, yet the token has recently handled far more transaction volume.
Moonrock Capital founder Simon Dedic said USDC has “consistently flipped” Tether in transfer volume over the past few months. Supply growth also supports the trend. Blockchain intelligence firm Arkham reported that more than $3 billion worth of USDC was issued in early March alone, while USDT’s supply has remained largely unchanged.
Rising stablecoin liquidity hints at returning market demand
Growing stablecoin flows are also showing up in broader market indicators. According to CryptoQuant analyst Sunny Mom, the Stablecoin Supply Ratio (SSR)—which compares Bitcoin’s market capitalization to the total stablecoin market cap—is recovering after a sharp drop in February.
The rebound suggests fresh buying power may be entering the market. Stablecoin balances on crypto exchanges recently climbed to a three-week high of $66.5 billion. On March 5 alone, about $5.14 billion in stablecoins flowed into exchanges, up from $1.14 billion on March 1.
Historically, rising stablecoin balances on trading platforms have signaled incoming capital and often preceded strong crypto market rallies.