USDC's growth rate has exceeded USDT for two consecutive years: the stablecoin market landscape is being rewritten

In 2025, a noteworthy change occurred in the stablecoin market: Circle’s USDC grew at a rate of 73%, surpassing Tether’s USDT growth rate of 36% for the second consecutive year. This is not just a comparison of growth figures; it reflects the profound impact of the changing regulatory environment in the United States on market structure.

Market Signals Behind the Growth Rate Reversal

Data comparison reveals clear trend differences:

Although USDT’s absolute market cap remains 2.5 times that of USDC, the continued reversal in growth rates indicates the market is making different choices. Behind this choice is a reassessment of “regulated” stablecoins.

Market Reshaping Driven by Regulatory Shift

In 2025, the US government’s attitude toward digital assets underwent a fundamental change. According to the latest news, the new acting SEC chair adopted a “dialogue rather than enforcement” strategy and withdrew lawsuits against multiple crypto companies with a “non-reprosecution” approach. This improvement in the policy environment directly increased market demand for regulated stablecoins.

Circle, as a stablecoin issuer holding a US trust license, has become the biggest beneficiary of this shift. According to relevant information, Circle issued an additional 250 million USDC in January 2026, reflecting strong market demand for its products. Meanwhile, traditional financial institutions like Interactive Brokers have begun supporting USDC as a method for account deposits, further validating that regulated stablecoins are becoming a key infrastructure connecting traditional finance and on-chain assets.

Increasing Market Concentration

USDC and USDT together account for over 80% of the total $312 billion stablecoin market capitalization, indicating limited benefits for other stablecoins under the current regulatory environment. The trend toward market concentration suggests that investors and institutions prefer to choose compliant products with strong issuer backgrounds when selecting stablecoins.

From Circle’s series of actions, its strategic intent is very clear: to gain recognition from the capital markets through an IPO, to connect to the Federal Reserve system via a trust license, to expand market share through issuance increases, and to develop application scenarios through payment products. All these measures point in the same direction — becoming the most competitive stablecoin provider under the new regulatory framework.

Future Possibilities

If a friendly regulatory attitude persists, the growth momentum of regulated stablecoins could further strengthen. Inflows of institutional funds, expansion of payment scenarios, and trust-building could continue to drive USDC’s growth. However, it is important to note that USDT still has a larger market cap and a broader application ecosystem, and its position is unlikely to be shaken in the short term.

Summary

USDC’s two consecutive years of growth surpassing USDT reflect the market’s rational choice amid policy shifts — a preference for regulated and compliant stablecoins. This is not a decline of USDT but a restructuring of the stablecoin market landscape. With the warming attitude of the US government and participation from traditional financial institutions, stablecoins are evolving from trading tools into a global payment and settlement infrastructure. In this process, compliance and institutional endorsement have become the most core competitive advantages.