USDC overtakes Tether again in trading volume… stablecoins hit a record high in monthly transaction volume

Monthly stablecoin transaction volume (digital assets pegged to the value of fiat currencies) hit an all-time high. USDC in particular saw a notable jump in trading volume, overtaking Tether (USDT).

According to Cointelegraph, a digital-asset news outlet, monthly stablecoin transaction value in February totaled $1.8 trillion, setting a new record.

Data analytics firm Allium said the most-traded stablecoin by monthly volume in February was USDC. About $1.26 trillion worth of USDC changed hands, accounting for 70% of total volume. Over the same period, Tether’s transaction volume came to about $514 billion.

While USDC’s market capitalization is about $100 billion smaller than Tether’s, it has consistently outpaced Tether in trading volume in recent months.

The industry is also increasingly viewing the expansion of stablecoin liquidity as a potential signal of a rebound in the digital-asset market.

In a report, CryptoQuant said, “The stablecoin supply ratio (SSR)—the ratio of stablecoin market capitalization to Bitcoin market capitalization—is showing a recovery again,” adding, “This indicates that the market’s buying power is increasing once more.” It continued, “As more stablecoins flow into exchanges, the pool of funds available to buy digital assets expands, which could form a foundation for a market upswing.”