Stablecoin Transaction Volume Reaches Record High in February

Stablecoins have achieved a new milestone with monthly transaction volumes hitting an unprecedented $1.8 trillion in February. According to Cointelegraph, Circle's USDC has surpassed Tether's USDt in transaction volume, marking a significant shift in the stablecoin market. Stablecoins, which are cryptocurrencies designed to maintain a stable value typically pegged to fiat currencies like the US dollar, have seen increased adoption across multiple blockchains. Data from Allium reveals that USDC transactions reached $1.26 trillion, more than double the $514 billion recorded for USDt. This consistent flipping of Tether by USDC in transfer volume has been noted over the past few months, as highlighted by Simon Dedic, founder at Moonrock Capital, in a recent post. Despite USDC's market cap being less than half of USDt's, its usage has surged, with USDC's market cap standing at $77.4 billion compared to USDt's $184 billion. The supply of USDC has also grown rapidly, with over $3 billion minted in March alone, according to market intelligence firm Arkham. This growth contrasts with USDt's relatively unchanged supply. As Cointelegraph reported, Circle Internet Group, the issuer of USDC, has reported strong earnings for Q4/2025, driven by the rapid expansion of USDC's business and payments operations. The increase in stablecoin liquidity suggests enhanced buying power in the crypto markets. The Stablecoin Supply Ratio (SSR), which measures the Bitcoin market cap relative to the stablecoin market cap, is recovering after a decline in February, indicating a return of buying power. Analyst Sunny Mom from CryptoQuant noted that Bitcoin's recent rise to $74,000 was supported by a recovery in stablecoin supply on exchanges, which reached a three-week high of $66.5 billion. Stablecoin inflows to exchanges have bolstered the SSR alongside Bitcoin's price. On March 5, stablecoin transfers to exchanges amounted to nearly $5.14 billion, up from $1.14 billion on March 1. The increased presence of stablecoins on exchanges is seen as a catalyst for potential Bitcoin bull markets, as sidelined capital returns to the market.