Stablecoin liquidity shift in crypto

PARAGRAPH 1 --- What happened: Circle's USDC has surged ahead of Tether's USDT in transaction volume, accounting for 70% in the first half of 2026, while USDT had around 25%. Stablecoin transaction volume globally reached $28 trillion in 2025, surpassing Visa. Despite Bitcoin's decline, stablecoin liquidity remains within crypto, flowing into yield strategies and real-world assets.

PARAGRAPH 2 --- Market impact: The shift in stablecoin preference from USDT to USDC is reshaping the crypto landscape. Companies like Circle are gaining traction, while Tether's dominance is challenged. Stablecoin markets are thriving in regions where venture capital is less prevalent, indicating potential growth in emerging markets. Stablecoin growth is outpacing other cryptocurrencies, with Tether and USDC seeing market cap increases of 65% and 128% respectively since June 2024.

PARAGRAPH 3 --- What to watch next: Investors should monitor USDC's market cap to see if it continues to close the gap with USDT. Upcoming stablecoin regulations, particularly in the U.S. and Europe, will impact the growth trajectory of both USDC and USDT. Additionally, the flow of stablecoin liquidity into different crypto sectors, such as yield farming and real-world assets, will shape the future of the crypto market.