JPMorgan: USDC surpasses USDT in on-chain activity and market capitalization growth

ChainCatcher news, according to The Block, JPMorgan analysts stated that driven by clearer regulatory frameworks and increased institutional adoption, Circle's stablecoin USDC has surpassed Tether's USDT in on-chain activity and market capitalization growth.

The market capitalization of USDC has risen from about $43 billion in January to approximately $74 billion now, an increase of 72%, far exceeding USDT's growth rate of 32% during the same period. This reflects a market shift towards stablecoins that emphasize transparency. USDC's transparent reserve management and regular audits have earned it the trust of institutions, and its compliance with frameworks such as the Markets in Crypto-Assets Regulation (MiCA) has made it the preferred stablecoin for financial institutions. The MiCA regulation, effective in July 2024, has accelerated the divergence in the circulation speed of the two stablecoins, with USDC's circulation speed and on-chain activity increasing, also supported by the Genius Act. USDT has been delisted due to not being authorized under MiCA, while USDC's integration with payment networks and its presence on chains like Solana, along with cross-chain transfer protocols, have also driven its growth. Emerging competition is likely to be a "zero-sum game," as unless the entire crypto market expands significantly, U.S. stablecoin issuers will mainly be competing for market share.