Monthly stablecoin transaction volume surged to a record $1.8 trillion in February 2026, with USDC overtaking USDT in transfer activity, according to blockchain analytics data.
Data from analytics firm, Allium, shows that USDC accounted for roughly 70% of all stablecoin transfers during the month highlighting growing on-chain usage despite the token’s smaller market capitalization compared with USDT.
USDC recorded about $1.26 trillion in transfer volume, more than double the $514 billion moved through USDT over the same period. Analysts say the trend has persisted for several months, with USDC regularly surpassing Tether in transaction activity despite a market cap less than half at ~$77 billion to that of USDT at ~$185 billion.
The surge is notable given that Tether remains the largest stablecoin by market capitalization, holding about $184 billion, while USDC’s market cap stands near $77 billion.
Meanwhile, USDC supply has expanded rapidly in early March 2026, with more than $3 billion minted in the first week of the month, according to blockchain intelligence platform Arkham.
STABLECOINS IN MARCH 2026 | #Circle has already minted over $3 BILLION in just the first week of March 2026.
If @circle continue at this pace, they’re on track to mint over $12 Billion $USDC by the end of the month. pic.twitter.com/D8iMw9C8Qu
— BitKE (@BitcoinKE) March 9, 2026
Market observers say the rising flow of stablecoins could signal improving liquidity in crypto markets. Increasing balances of stablecoins on exchanges have historically preceded price rallies, as they represent capital ready to be deployed into digital assets.
USDC reported strong earnings in Q4 2025 driven by a rapid growth in USDC payment operations and business particularly among regulated entities. The stablecoin issuer has also been focussed on getting a footing within jurisdictions that have a clear or upcoming crypto policy framework while working with compliant-conscious institutions within these jurisdictions.
REGULATION | USDC Stablecoin Issuer, Circle, Already in Talks with Kenyan Government to Launch its Payments Network
Recent developments with USDC, such as the introduction of NanoPayments, continue to provide further momentum to the stablecoin as it prepares for a future of agentic commerce.
REGULATION | USDC Stablecoin Issuer, Circle, Already in Talks with Kenyan Government to Launch its Payments Network
Stablecoin inflows to exchanges have already climbed sharply with about $5.14 billion transferred on March 5 2026, up from $1.14 billion on March 1 2026, indicating renewed buying power in the market.
Stay tuned to BitKE for updates into stablecoins markets developments.
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