Stablecoin monthly transaction volume reached a record $1.8 trillion in February, with Circle‘s USDC comprising 70% of that total and flipping Tether‘s USDt in transfer volume. Data shows USDC’s transaction volume hit $1.26 trillion, more than double USDt’s $514 billion, despite having a smaller market cap. Analysts note that rising stablecoin supply on exchanges indicates returning buying power, which has historically been a catalyst for cryptocurrency market recoveries.
Stablecoin monthly transaction volume reached a record $1.8 trillion in February, according to data from Allium. USDC comprised 70% of all stablecoin volume, with its transaction volume reaching a high of $1.26 trillion.
This was more than double that of USDt, whose transfer volume was $514 billion in February. USDC has “consistently flipped” Tether in transfer volume over the last few months, said Simon Dedic, founder at Moonrock Capital.
USDC’s usage comes as a “surprise” given its market cap is less than half that of USDt, Dedic added. Over $3 billion in USDC has been printed already in March, according to market intelligence firm Arkham, as USDt’s supply has remained relatively unchanged.
The Stablecoin Supply Ratio is “steadily recovering after crashing” in February, said CryptoQuant analyst Sunny Mom. “This shows buying power is returning to the market.”
Meanwhile, Bitcoin’s latest push to $74,000 was fueled by a recovery in stablecoin supply on crypto exchanges. Stablecoin supply on exchanges rose to a three-week high of $66.5 billion.
Stablecoin inflows to exchanges have boosted the SSR alongside Bitcoin’s price. On March 5, the total amount of stablecoins transferred to exchanges amounted to nearly $5.14 billion, up from $1.14 billion on March 1.
