USDC grows $2B as USDT sheds $3B, stablecoin supply hits $315B

USDC supply rose by about $2B in Q1 2026 while USDT fell by roughly $3B. The gap is the widest since mid‑2022 amid a contracting crypto market.

Circle’s USDC gained share as USDT lost ground in trading and on‑chain use. Transfer activity hit a February peak for USDC.

Key numbers
- Total stablecoin supply hit $315B by end‑March, up ~$8B QoQ CEX.io Q1 report.
- Stablecoins took 75% of all crypto trading volume in Q1, a record share CEX.io Q1 report.
- Retail-sized transfers fell 16% QoQ, the steepest drop on record CEX.io Q1 report.
- Automated and algorithmic flows made up ~75% of stablecoin transaction volume CEX.io Q1 report.

Stablecoin settlement kept compounding. Research shows stablecoins now process more value annually than Visa and Mastercard combined JPMorgan research.

New supply also came from yield‑bearing stablecoins. The segment stands near $3.7B with daily volumes above $100M, based on CoinGecko data.

Banks pushed back on interest‑bearing designs. They lobbied Congress to curb stablecoins that pay returns, arguing they resemble financial instruments, not payment tools Fed Vice Chair Barr to Congress.

CEX.io frames the quarter as structural growth under pressure, with institutions and bots lifting volumes as everyday users step back CEX.io Q1 report.