Circle’s strategic positioning and US regulatory compliance have helped USDC increase its market dominance from 20% to 25.5% while USDT’s share declined.
Solana’s DeFi ecosystem expansion and Trump-backed initiatives have catalyzed USDC adoption, with $6 billion minted on the network in January 2025.
The stablecoin landscape shows a clear shift in momentum, with USDC leveraging institutional partnerships and Solana’s growth to challenge USDT’s dominance.
The global mainstream adoption of digital assets and Web3 protocols has democratized the use of fiat-backed stablecoins led by Tether’s , and Circle’s . Last week, Alphractal, an advanced platform for investment data analysis, that the USDC has been gaining an edge over USDT, following a meteoric growth since 2023.
While other fiat-backed stablecoins have remained relatively stagnant in the past few years, USDC has registered gradual growth. According to market data from , the popularity of USDC has grown exponentially in the past year, with its average daily transactions increasing by more than 119 percent since January 2024 to date.
USDC is becoming increasingly popular, with the number of daily transactions increasing by over 119% in the last year! pic.twitter.com/AODNgEnnnp
— IntoTheBlock (@intotheblock) February 3, 2025
USDC is becoming increasingly popular, with the number of daily transactions increasing by over 119% in the last year!
— IntoTheBlock (@intotheblock)
According to market data from , USDC’s market dominance was about 20.08 percent exactly a year ago, compared to USDT’s 73.51 percent. As of February 3, 2025, Tether’s USDT had a market dominance of about 65.40 percent while Circle’s USDC recorded a net dominance of about 25.5 percent.
The large-cap stablecoin, with over $54 billion in fully diluted valuation and over $19.4 billion in 24-hour average trading volume, is heavily regulated in top jurisdictions including the United States. Since 2018, Circle has inked dozens of strategic partnerships with different global financial institutions and businesses to help in the distribution of its products.
Furthermore, the Donald Trump administration has laid significant emphasis on bolstering the US dollar as the global reserve currency with the help of the greenback-backed stablecoins.
Circle’s USDC Thrives on Solana Network
Following the recent changes of Tether Limited Inc.’s headquarters to El Salvador, Circle’s USDC has gained significant traction in the United States. The adoption of USDC in the United States, especially through the Solana network has helped the stablecoin compete with Tether’s USDT significantly.
Furthermore, the network has grown to a major DeFi ecosystem, requiring stablecoins for liquidity management. With the Solana network having received a major boost from US President Donald Trump through the launch of the Official Trump (TRUMP) and Melanie Meme (MELANIA), the demand for USDC was bound to skyrocket.
According to on-chain data, Circle minted around $6 billion on the Solana network in January 2025. Since launching the TRUMP memecoin, Trump-backed (WLFI) has digital assets worth around $802 million, out of which over $482 million is in USDC and .
NEW: @circle mints another $250M $USDC on @solana, pushing January’s total to $6B. pic.twitter.com/khPXYUD0Nu
— SolanaFloor (@SolanaFloor) February 1, 2025
NEW: mints another $250M on , pushing January’s total to $6B.
— SolanaFloor (@SolanaFloor)
The rising adoption of Web3 protocols on the Solana network has seen its stablecoins market cap rise to over $11.7 billion, having surged from around $2.2 billion exactly a year ago. With the ongoing crypto regulatory clarity from the US federal government via Congress, the USDC supply on the Solana network is well positioned to grow exponentially in the coming years.