The $33 Trillion Signal
Stablecoin transaction volume hit a record $33 trillion in 2025, a 72% year-over-year surge that eclipses the GDP of most G7 nations. Data from Artemis Analytics reveals a critical market discrepancy: while Tether (USDT) retains the market cap crown ($187B), Circle’s USDC has become the dominant engine of value transfer, processing $18.3 trillion compared to Tether’s $13.3 trillion.
The Velocity Flip
Market cap tells one story; velocity tells another. USDC’s volume dominance ($5T lead over USDT) highlights its entrenched role in high-frequency DeFi execution. While Tether remains the collateral of choice for centralized exchanges and offshore store-of-value, USDC is the preferred fuel for on-chain automated market makers and lending protocols. The disparity is stark: USDC holds ~29% of the total stablecoin market cap but commands 55% of the transaction flow.
“USDC is moving far more frequently on-chain… driven by Solana’s DeFi explosion where it captures over 70% of the network’s supply.”. Artemis Analytics Data
Regulatory Tailwind
The volume explosion correlates directly with the passage of the Genius Act in July 2025. The legislation, which established federal standards for fiat-backed stablecoins, de-risked the asset class for institutional treasuries. Following the bill’s enactment, Q4 2025 volume alone accelerated to $11 trillion as traditional fintech rails began aggressive integration.
Organic vs. Bot Volume
Despite the headline growth, the composition of flow is shifting. Artemis notes that while total volume skyrocketed, the share of volume on decentralized platforms marginally declined. This indicates a rotation toward “real-world” utility, cross-border B2B payments and merchant settlement, finally eating into the dominance of arbitrage bots and yield farming loops.
