USDT Dominates Payments While USDC Powers DeFi: Stablecoins Diverge
Vexoda Newsroom
Dune analysis shows Tether's USDT is the dominant payments stablecoin, while Circle’s USDC leads in decentralized finance. This divergence highlights how blockchain choice shapes stablecoin use and im
USDT has emerged as the leading stablecoin for on-chain payments, processing $95 billion worth of commerce transactions during the first half of 2026, compared to just $14 billion for USDC. This dominance is particularly pronounced in business-to-business (B2B) payment volumes, where USDT accounts for nearly 92% of the total volume on Tron's largest network.
On the other hand, USDC has established itself as a key player in decentralized finance (DeFi), with significant transactional activity. On Base, USDC processed $2.6 trillion in transfer volumes during June, while on Ethereum it handled another $1.6 trillion. This usage reflects its extensive role in trading and DeFi applications.
The findings from Dune’s Digital Asset Brief indicate that the traditional narrative of USDT versus USDC as direct competitors is becoming less relevant. Instead, each stablecoin has carved out a distinct niche: USDT for payments and remittances, while USDC supports much of crypto's trading and DeFi activity.
These developments are taking place against the backdrop of growing regulatory scrutiny in the United States following the passage of the GENIUS Act in 2025. The CLARITY Act is currently under debate, which could further shape the regulatory landscape for stablecoins and other digital assets.
The market capitalization of USDT and USDC combined accounts for about 83% of the approximately $315 billion stablecoin sector, according to Dune’s tracking data. This dominance underscores their critical role in shaping the crypto ecosystem's financial infrastructure.
Traders should monitor how these regulatory changes affect both stablecoins' market positions, as well as potential shifts in blockchain usage and user preferences within the broader DeFi space.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.