Ethereum News Today: USDC Surpasses USDT on Ethereum as Stablecoin Market Hits $271.1 Billion

Stablecoins have reached a total market value of $271.1 billion as of August 12, 2025, with Tether’s USDT continuing to dominate on the TRON blockchain, while Circle’s USDC has taken the lead on Ethereum. This trend reflects broader network preferences, regulatory positioning, and retail-driven activity across major exchanges. USDC now processes more than $20 billion in daily transfers on a 7-day average, compared to USDT’s $12–$15 billion range on Ethereum. The shift underscores the increasing role of DeFi integration and regulatory transparency in shaping stablecoin adoption [1].

USDC’s rise on Ethereum is primarily attributed to its deep integration into decentralized finance (DeFi) platforms and its regulated reserve disclosures, which have strengthened trust among institutional and retail users. Over the period from 2018 to 2025, ERC20 stablecoin transfers totaled $39.7 trillion, with USDC leading in daily transaction volumes. Meanwhile, USDT has seen a significant shift in activity to TRON, where its TRC20 version is now heavily used on retail-focused exchanges such as Binance, Bybit, and HTX. These platforms have driven deposit surges, pushing transaction counts to multi-month highs [1].

In a new regulatory environment shaped by U.S. legislation, the relatively small but growing USD1 stablecoin has seen its first major issuance since the GENIUS Act took effect. On August 6, 2025, USD1 recorded a $23 million mint, signaling the emergence of a niche for fully regulated stablecoins. While its market share remains modest compared to USDT and USDC, USD1’s compliance-focused structure could attract institutional investors and users prioritizing regulatory clarity [1].

The broader stablecoin market has shown a clear network-based division, with Ethereum and TRON each supporting distinct dominant tokens. USDC’s dominance on Ethereum is driven by its role in DeFi protocols and its transparent reserve management, while USDT’s position on TRON is reinforced by the network’s low transaction costs and fast processing times. This dynamic highlights how blockchain infrastructure and exchange activity influence stablecoin usage patterns.

The market’s growth and fragmentation indicate a maturing industry, where regulatory developments and technical performance are key determinants of success. Retail-driven flows have played a critical role in the continued dominance of USDT, particularly in markets where user preference for low fees and fast transactions outweighs concerns about regulatory scrutiny. At the same time, the rise of USDC on Ethereum reflects a broader shift toward more institutional-grade solutions, especially in DeFi ecosystems [1].

USD1’s recent issuance under the GENIUS Act signals the beginning of a new regulatory era for stablecoins in the U.S. While it is still in the early stages of adoption, the token’s regulated structure could serve as a model for future projects seeking to align with emerging legal frameworks. Analysts suggest that USD1’s potential lies in its ability to attract capital from institutions that require compliance-ready assets [1].

As stablecoin usage continues to expand across multiple blockchains, market participants are advised to monitor key metrics such as daily transfer volumes, exchange deposit counts, and regulated issuance activity. These indicators will help track the evolving dynamics of the $271.1 billion stablecoin market in the second half of 2025.

Source: [1] USDT Still Leads as USDC Appears to Gain Ground on Ethereum Amid Record $271B Stablecoin Market (https://en.coinotag.com/usdt-still-leads-as-usdc-appears-to-gain-ground-on-ethereum-amid-record-271b-stablecoin-market/)