USDC transaction volume surpasses USDT as Solana DeFi and Trump token frenzy reshape stablecoin market

In a pivotal year for stablecoins, usdc transaction volume surged past its largest rival, signaling a shift in how crypto dollars move across blockchains.

USDC overtakes USDT in annual on-chain flows

For the first time, Circle‘s USDC has eclipsed Tether‘s USDT in yearly transfer activity, redefining the pecking order in the stablecoin sector. Despite USDT maintaining a hefty $187 billion market cap versus USDC’s $75 billion, 2025 data shows the smaller token is powering more value across networks.

According to Artemis Analytics, USDC processed $18.3 trillion in transfers in 2025, while USDT handled $13.2 trillion. That represents a 39% lead for USDC in what Artemis classifies as organic stablecoin activity. However, this shift is not immediately obvious from market cap rankings alone.

The Artemis Stablecoin Transfer Volume metric strips out MEV bot flows and intra-exchange movements, focusing on transactions that represent genuine on-chain usage. In practice, that means real-world payments, P2P transfers, and DeFi operations are counted, while automated arbitrage and internal exchange shuffling are excluded.

DeFi mechanics drive higher USDC turnover

The divergence in activity stems in part from how each stablecoin is used in crypto markets. Analysts note that USDC is deeply embedded in decentralized finance platforms, where users constantly rebalance positions, post collateral, and rotate between strategies. Moreover, the same dollar-pegged token can circulate repeatedly through lending markets and DEXs in a single day.

By contrast, USDT is more often treated as a store of value and simple payment vehicle, particularly in emerging markets and centralized exchanges. That said, this profile leads to fewer on-chain transfers per unit of supply, even though USDT still dominates many trading venues by volume and liquidity.

Solana’s role in USDC’s transactional surge

Network composition has become a critical differentiator. Solana’s rapid DeFi expansion turned into a powerful engine for USDC usage, as protocols increasingly standardize on Circle’s asset as their base stablecoin. On Solana, USDC now represents more than 70% of total stablecoin supply, underlining its central role in that ecosystem.

In Q1 2025, Solana’s combined stablecoin supply jumped from $5.2 billion to $11.7 billion, a 125% increase driven almost entirely by fresh USDC inflows. However, USDT remains more concentrated on Tron, where it continues to serve as the dominant dollar token but sees relatively less DeFi recycling compared with Solana’s high-velocity environment.

This geographic and technical split means USDC is plugged into the fastest-growing segment of on-chain finance, while USDT’s strength remains in legacy trading infrastructure. As a result, usdc transaction volume on Solana has become a key driver of the overall flip in annual flows.

TRUMP memecoin creates unexpected USDC tailwind

An unlikely catalyst amplified the trend at the start of the year. In January 2025, the launch of the TRUMP memecoin drew intense speculative interest, especially on Solana. The token’s main liquidity pool on Meteora DEX is paired with USDC rather than USDT, making Circle’s stablecoin the default entry point for traders chasing the narrative.

To gain exposure to TRUMP, users first had to acquire USDC, significantly increasing demand and turnover for the asset. Moreover, this liquidity flow did not stay confined to a single pair; it spilled over into other pools and lending protocols across Solana’s DeFi stack.

The irony deepened in March 2025, when the Trump family launched their own stablecoin, USD1, via World Liberty Financial. Despite that move, the TRUMP token hype cycle primarily funneled volume into an incumbent competitor’s stablecoin rather than into USD1 itself.

Regulation boosts USDC’s perceived safety

Regulatory momentum added another structural advantage for USDC during 2025. The Genius Act, passed in the United States in July, established clear standards for stablecoin issuers concerning reserves, disclosures, and supervision. Industry observers argue that Circle’s long-standing focus on transparency and circle regulatory compliance positioned USDC to capitalize on this new framework.

In Europe, implementation of MiCA rules has further differentiated compliant issuers from those facing scrutiny. That said, several exchanges have come under pressure regarding their support for USDT, prompting delistings or tighter controls in certain jurisdictions. USDC’s MiCA-aligned structure has therefore become a competitive edge at the policy level.

Together, these developments have reassured institutional users and payment firms that require rigorous oversight. Consequently, more of their on-chain flows are migrating toward USDC, reinforcing the gap in measured stablecoin transfer volume.

Stablecoins evolve into a major payment rail

The rise of USDC is part of a broader expansion in dollar-pegged tokens. Overall stablecoin activity reached new highs in 2025, with total transaction volume climbing to $33 trillion, an increase of 72% year over year. Moreover, the growth accelerated into year-end, highlighting the sector’s momentum.

In Q3 2025, stablecoins processed $8.8 trillion in on-chain flows, followed by a sharp jump to $11 trillion in Q4. Analysts see this as evidence that stablecoins are transitioning from a niche trading tool into a core layer of global stablecoin payment rails, sitting alongside card networks and bank transfers.

Bloomberg Intelligence forecasts that stablecoin payment flows could reach $56 trillion by 2030. However, whether USDC can maintain its current lead over USDT will depend on future DeFi trends, cross-chain competition, and the next wave of global regulation.

In summary, 2025 marked a historic break in the stablecoin hierarchy: USDC, powered by Solana DeFi, regulatory clarity, and even memecoin speculation, now moves more value annually than its larger rival while the entire sector races toward multi-trillion-dollar settlement scale.