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Circle's USDC volumes top Tether's USDT for first time since 2019, prompting sell-side price target hike

3/13/2026, 3:18:29 PM
LyanBy Lyan
Circle's USDC volumes top Tether's USDT for first time since 2019, prompting sell-side price target hike

Circle's USDC Volumes Surge Past Tether's USDT, Analyst Target Increased

In a notable shift in the stablecoin landscape, Circle's USDC has reportedly surpassed Tether's USDT in trading volume for the first time since 2019. This development signals a potential change in market dynamics and investor preference within the cryptocurrency ecosystem. This milestone comes amid ongoing scrutiny of stablecoin reserves and regulatory frameworks.

The increase in USDC volume appears to have caught the attention of traditional financial institutions. Japanese investment bank Mizuho has maintained a neutral rating on Circle but has reportedly increased its price target to $120, up from a previous target of $100. This upward revision suggests a revised outlook on Circle's potential, likely driven by the increasing adoption and utilization of USDC.

Expert View

The observed shift in stablecoin dominance is significant. While USDT has traditionally held a substantial lead in market capitalization and trading volume, USDC's recent gains suggest a growing demand for stablecoins perceived as more transparent and compliant with regulatory standards. This could be driven by institutional investors, who often favor assets with greater regulatory clarity and auditability. The reported increase in Mizuho's price target, while a single data point, further reinforces the notion that traditional financial players are taking note of USDC's rise.

However, it is crucial to consider the broader context. Market conditions, regulatory developments, and specific use cases all contribute to the fluctuating demand for different stablecoins. The specific reasons for USDC's recent surge require further investigation. Are there specific events or partnerships driving adoption? Is it a result of increased regulatory pressure on USDT? These are critical questions to address before drawing definitive conclusions.

What To Watch

Several factors will be crucial in determining whether USDC can maintain or extend its gains against USDT. We will be closely monitoring the following:

  • Regulatory Developments: Increased regulatory scrutiny of stablecoins globally could disproportionately impact different players based on their compliance postures.
  • Reserve Audits and Transparency: The frequency and thoroughness of reserve audits for both USDC and USDT will continue to be a key factor influencing investor confidence.
  • Adoption by Institutional Investors: The extent to which institutional investors integrate USDC into their trading strategies will be a significant indicator of its long-term viability.
  • New Use Cases: The emergence of new applications for stablecoins, particularly in decentralized finance (DeFi) and enterprise solutions, could favor specific stablecoins with certain technological advantages.

The competitive landscape between stablecoins is dynamic and constantly evolving. The next few months will provide valuable insights into the long-term implications of this shift in trading volume and the factors that will ultimately determine the dominant players in the stablecoin market.

Source: CoinDesk