Circle’s USDC stablecoin has overtaken Tether’s USDT in transaction volume for the first time in several years, marking a notable shift in activity across the stablecoin market.
According to a research note from Japanese investment bank Mizuho, USDC has processed approximately $2.2 trillion in adjusted transaction volume so far in 2026, compared with around $1.3 trillion recorded by USDT over the same period.
The figures suggest USDC now accounts for roughly 64% of adjusted stablecoin transaction activity.
The development represents a significant reversal from the previous several years, during which Tether consistently dominated transaction volumes.
Between 2019 and 2025, USDC typically represented only about 30% of the market by volume.
Stablecoin Activity Trends Drive Analyst Forecasts
The surge in USDC usage has prompted Mizuho analysts to revise their outlook for Circle, the company behind the dollar-pegged token.
Analysts Dan Dolev and Alexander Jenkins raised their price target for Circle shares to $120 from $100, while maintaining a neutral rating on the stock.
The revised forecast reflects growing activity on the USDC network as well as expanding use cases tied to emerging applications in the crypto economy.
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In particular, analysts highlighted areas such as prediction markets and automated or “agentic” commerce as potential drivers of transaction growth for the stablecoin.
Circle shares rose modestly in early trading following the report, reaching $115.40. The stock has climbed sharply in recent months and is up roughly 95% from its lows recorded in February.
Stablecoins Remain Core Infrastructure In Crypto Markets
Stablecoins, digital tokens designed to maintain a stable value by being backed by reserves such as fiat currency or other assets, play a central role in the cryptocurrency ecosystem.
They are widely used for payments, trading settlement, and cross-border transfers across blockchain networks.
Despite the shift in transaction volumes, Tether remains the largest stablecoin by market capitalization, with a supply valued at roughly $143 billion.
Circle’s USDC follows as the second-largest stablecoin, with an estimated market capitalization of about $78 billion.
The new transaction data, however, suggests that while USDT continues to dominate in size, USDC is increasingly becoming the preferred medium for transactional activity across parts of the digital asset economy.
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