Circle Challenging Tether's Stablecoin Dominance in 2025

Circle's USDC stablecoin has grown faster than Tether's USDT in 2025, increasing its circulating supply by 40.4% compared to USDT's 13.6%. USDC's search queries have also grown 3% while USDT's popularity has declined 25%. USDC has outperformed USDT in fiat trading volume growth rates, with USDT's trading volumes declining 26% compared to USDC's 0.2% decline.

As of June 19, 2025, Circle's USDC stablecoin has demonstrated significant growth, surpassing Tether's USDT in several key metrics. According to recent data, USDC's circulating supply has increased by 40.4%, compared to USDT's 13.6% growth [1]. This growth trajectory is accompanied by a 3% rise in search queries for USDC, while USDT's popularity has declined by 25% [1]. Furthermore, USDC has outperformed USDT in fiat trading volume growth rates, with USDT's trading volumes declining by 26%, compared to USDC's minimal 0.2% decline [1].

Circle's stock, listed as CRCL, has also shown remarkable performance, surging over 530% from its IPO listing price of $31 on June 5 [3]. This surge coincides with the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which aims to create an overarching regulatory framework for stablecoins [3]. The bill's passage may have contributed to Circle's stock surge, as well as a 16% increase in Coinbase's stock [3].

USDC's rapid growth can be attributed to its expanding use cases and regulatory compliance. Circle has been actively integrating USDC into various platforms and services, such as the Ripple-connected Layer 1 blockchain XRP Ledger and Coinbase Derivatives [3]. Additionally, USDC's compliance with regulatory standards, including the EU's Markets in Crypto-Assets Regulation (MiCA) and Canadian Securities Administrators (CSA) requirements, has bolstered investor confidence [1].

In contrast, Tether has faced scrutiny over its transparency and the nature of its reserves, despite its dominant market position [1]. However, Tether's strategic liquidity positioning, as demonstrated by its recent $1 billion USDT mint, suggests a proactive approach to meet anticipated market demand [2]. This minting event, occurring just hours before the Federal Reserve's FOMC meeting, has sparked speculation about potential Bitcoin price rallies [2].

In conclusion, while both USDC and USDT play crucial roles in the stablecoin market, USDC's recent growth and regulatory compliance make it a preferred choice for investors seeking transparency and regulatory assurance. Tether's strategic liquidity positioning and market dominance, however, continue to make it a staple in the crypto trading ecosystem. As the market awaits the Federal Reserve's interest rate announcement, both stablecoins will likely influence the trajectory of crypto asset prices.

References:
[1] https://messari.io/compare/usd-coin-vs-tether
[2] https://en.coinotag.com/tether-mints-1-billion-usdt-ahead-of-fomc-meeting-potentially-signaling-bitcoin-price-movement/
[3] https://www.tradingview.com/news/the_block:f55514bb6094b:0-circle-s-stock-nears-200-per-share-rises-over-500-two-weeks-after-going-public/