Key Takeaways
- Since the beginning of February, Circle has issued more than $8 billion worth of USDC as cryptocurrency markets regained strength.
- Total USDC supply has climbed above $78 billion even after challenging market conditions dominated the early quarter.
- Bitcoin posted a 7.3% weekly gain and reached $73,238, while Ethereum surged 12.34% over the same seven-day period.
- With $2.2 trillion in adjusted transaction volume so far this year, USDC has overtaken USDT in this metric.
- Throughout 2025, stablecoins have facilitated $33 trillion in transactions, equaling Visa’s yearly payment processing volume.
Bitcoin posted a 7.3% weekly increase and reached $73,238, while Ethereum registered a 12.34% gain across seven days. During this recovery phase, Circle has issued over $8 billion in USDC since the start of February. The Fear and Greed Index has climbed back to 39, indicating a shift toward more positive market sentiment.
USDC Circulation Grows Despite Earlier Market Weakness
Circle has pushed USDC circulation beyond $78 billion even though cryptocurrency valuations faced headwinds earlier in the quarter. Arkham highlighted this minting activity on X, raising questions about whether such substantial issuance makes sense during bearish market phases. Blockchain data reveals that 66% of the USDC supply resides on Ethereum, with Solana holding 10.7%, equivalent to $8.4 billion.
At the same time, Ethereum Layer 2 solutions are capturing increasing portions of USDC circulation. Base now accounts for 5.5% of the total supply, while Arbitrum represents 2.7%. This allocation spreads capital throughout active trading platforms and decentralized finance protocols instead of sitting idle outside the crypto ecosystem.
Adjusted Transaction Volume Shows USDC Leading USDT
For the first time since 2019, USDC has exceeded Tether’s USDT in adjusted transaction volume. This metric filters out automated transfers and internal token movements to capture genuine economic activity. According to Mizuho’s analysis, USDC has generated $2.2 trillion in adjusted volume year-to-date, compared to USDT’s $1.3 trillion.
These figures give USDC a commanding 64% market share in adjusted transaction volume. Following this report, Mizuho increased its Circle price target to $120. Meanwhile, Bernstein established a $190 target price, pointing to USDC’s supply stability throughout the recent downturn.
Global Stablecoin Adoption Continues Accelerating
Stablecoins have handled $33 trillion in transaction volume throughout 2025, matching the annual payment volume processed by Visa. In Nigeria, 59% of cryptocurrency holders maintain USDT positions as a dollar-denominated savings vehicle. Similar adoption patterns have emerged in Argentina, Colombia, and the Philippines according to regional market research.
U.S. Treasury Secretary Scott Bessent has forecast that stablecoin market capitalization could expand to $3 trillion by 2030. The combined stablecoin market cap has now surpassed $300 billion as digital asset prices stage a recovery. The Fear and Greed Index currently registers at 39 after spending multiple weeks in Extreme Fear territory.
