Circle’s USDC and Tether’s USDT remain the top two stablecoins. In 2025, USDC shows signs of strong growth in volume and market share. However, it still trails behind the market leader, USDT.
This article examines key data on USDC from Kaiko’s latest report and evaluates USDC’s position in the highly competitive stablecoin market.
Can USDC Overtake USDT on Centralized Exchanges?
According to a report from Kaiko Research, USDC reached a new record in trading volume with $219 billion in April 2025. That figure is more than double the $106.5 billion recorded in January 2024.
Binance, the world’s largest crypto exchange, played a crucial role. Thanks to a strategic agreement signed with Circle in December 2024, it accounted for over 57% of USDC’s global trading volume.
Kaiko data indicates that USDC’s market share among stablecoins on Binance increased from 10% at the end of last year to nearly 20% today.
In contrast, USDT’s market share on Binance decreased from 75% at the end of 2024 to approximately 60% today.
Two main factors explain this impressive growth in USDC’s volume and share. First, the partnership with Binance gave USDC access to a large user base.
Second, USDC benefited from the growing demand for regulatory-compliant stablecoins, especially in Europe, where the MiCA framework is now in effect.
“The deal is also highly profitable for Binance, with Circle paying over $60 million upfront plus ongoing incentives, while aligning with Binance’s compliance push under Europe’s MiCA rules.” – Kaiko reported.
Additionally, when comparing the volume changes between USDC and USDT during the same period, USDC stands out as the stronger performer.
Since November 2024, USDT’s monthly volume has dropped by 49%. In contrast, USDC’s volume has increased by 16%.
“While USDC is gaining momentum on centralized exchanges, Tether’s USDT is facing headwinds. USDT trading volumes on CEXs have dropped sharply… mirroring a broader contraction in USD-denominated trading activity. This decline reflects persistent risk-off sentiment, weaker retail engagement, and limited speculative appetite across crypto markets.” – Kaito explained.
Despite USDC’s growth, it still has a long way to go before it catches up with USDT. As of May 2025, USDT’s market capitalization is $152 billion, 2.3 times higher than its market cap in July 2022.
Meanwhile, USDC’s market cap is $60 billion, only 12% higher than its July 2022 level.
Tether, the company behind USDT, also reported outstanding profits. It earned $13 billion in 2024, compared to Circle’s $155 million over the same year. In addition, USDT still dominates in off-exchange applications, especially in cross-border payments.
USDC and USDT continue to be the top stablecoins. However, the stablecoin space could change quickly as new competitors emerge. Major financial institutions like PayPal, World Liberty Financial, Fidelity, Ripple, BlackRock, and Meta have entered the competition.
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