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USDT leads crypto payments, USDC powers DeFi as stablecoins diverge

Created at 7 Jul · 6:10 PM1 source↑ Market-relevant
IN SHORT

Tether's USDT has become the dominant stablecoin for crypto payments, settling $95 billion in commerce payments in H1 2026. Meanwhile, Circle's USDC underpins decentralized finance, processing $2.6 trillion in transfers on Base in June, highlighting distinct roles for major stablecoins.

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Key Numbers

$95 billionUSDT commerce payments in H1 2026
$14 billionUSDC commerce payments in H1 2026
92%USDT's share of B2B payment volume
93%USDT supply on Tron in ordinary wallets
$2.6 trillionUSDC transfer volume on Base in June
$1.6 trillionUSDC transfer volume on Ethereum in June
20 timesUSDC daily velocity on Base in June
83%Market share of USDT and USDC combined
$315 billionTotal stablecoin market capitalization

Who's Involved

Dune
Data analytics platform providing stablecoin usage insights
Tether
Issuer of USDT stablecoin
Circle
Issuer of USDC stablecoin

↳ Why This Matters

The divergence in stablecoin usage highlights how blockchain infrastructure and regulatory clarity are shaping the utility and adoption of digital assets, impacting payment systems and decentralized finance growth.

Key facts

  • USDT accounted for 92% of $48 billion in business-to-business payment volume.
  • On Tron, 93% of USDT supply is held in ordinary wallets, not exchanges.
  • USDC on Base recorded daily velocity of 20 times its circulating supply in June.
  • USDT and USDC together account for 83% of the stablecoin market's $315 billion capitalization.
  • The GENIUS Act, signed into law in 2025, created the first federal regulatory framework for payment stablecoins.
  • The CLARITY Act, currently being debated, would define SEC and CFTC jurisdiction over crypto assets.

Data from Dune indicates a divergence in the use cases of major stablecoins Tether (USDT) and Circle (USDC), with each carving out distinct niches within the cryptocurrency ecosystem. USDT has emerged as the dominant stablecoin for on-chain payments, settling approximately $95 billion in identified commerce payments during the first half of 2026, and accounting for about 92% of business-to-business payment volume. Its significant presence on the Tron network, where 93% of its supply is held in ordinary wallets, underscores its role in payments and remittances.

Conversely, USDC has solidified its position as the leading stablecoin in decentralized finance (DeFi). In June, USDC on the Base blockchain processed $2.6 trillion in transfer volume, the highest among all token-chain pairs, while an additional $1.6 trillion was handled on Ethereum. USDC on Base also exhibited a daily velocity of roughly 20 times its circulating supply, reflecting its extensive use in trading and DeFi activities.

These findings suggest that the narrative of direct competition between USDT and USDC is becoming outdated. Instead, the stablecoins are increasingly becoming chain-specific products serving different functions. USDT's supply is nearly evenly split between Tron and Ethereum, while USDC remains heavily concentrated on Ethereum, despite its expansion to other blockchains.

Together, USDT and USDC represent approximately 83% of the stablecoin market's $315 billion capitalization. In the United States, the stablecoin sector has seen regulatory developments, including the passage of the GENIUS Act in 2025, which established a federal framework for payment stablecoins. Lawmakers are currently debating the CLARITY Act, which aims to define regulatory jurisdiction for crypto assets between the SEC and CFTC, potentially shaping the broader operating environment for stablecoin issuers and DeFi platforms.

Frequently asked questions

USDT is primarily used for on-chain payments and remittances, handling a significant volume of commerce and business-to-business transactions.

USDC is predominantly used in decentralized finance (DeFi) and trading activities, demonstrating high velocity and transfer volumes on blockchains like Base and Ethereum.

The total stablecoin market capitalization is approximately $315 billion, with USDT and USDC accounting for 83% of this value.

The GENIUS Act, signed into law in 2025, established the first federal regulatory framework for payment stablecoins in the United States.

What Happens Next

01The CLARITY Act may receive a full Senate vote before the August recess.
02Lawmakers continue to debate the regulatory framework for digital assets.

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Cadence

How It Developed

USDT is the dominant stablecoin for on-chain payments, settling $95 billion in commerce payments in H1 2026.
USDC is the dominant stablecoin in decentralized finance, processing $2.6 trillion in transfers on Base in June.
US lawmakers are debating the CLARITY Act, which would define regulatory jurisdiction for crypto assets.
The GENIUS Act established a federal regulatory framework for payment stablecoins in 2025.

Sources

T1
USDT wins payments, USDC wins DeFi as stablecoins diverge: DuneDune data shows Tether's USDT has become crypto’s dominant payments stablecoin while Circle's USDC powers DeFi, highlighting how blockchain choice shapes stablecoin use.Cointelegraph

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