On crypto payment platform NOWPayments, USDT retains a clear lead in stablecoin transaction volume in the first half of 2026, but USDC is posting spectacular annual growth that is gradually reshuffling the global competitive landscape.
🔑 Key Takeaways
- USDT captures 66.92% of stablecoin volume on NOWPayments in H1 2026
- USDC surges +209.02% in transaction count and +101.63% in volume year-over-year
- Globally, USDC now outpaces USDT in adjusted volume (64% per Mizuho)
- USDC supply hits a record $81.1 billion, versus $184 billion for USDT
- The U.S. regulatory framework (GENIUS Act, OCC NPRM) strengthens USDC’s appeal for institutions
USDT stays on top, USDC closes the gap on NOWPayments
The report published by Chainwire on August 14, 2026, via NOWPayments highlights an apparent paradox: USDT remains the reference stablecoin by volume, while USDC shows the strongest momentum in the market. In the first half of 2026, USDT accounts for 66.92% of total stablecoin transaction volume on the platform and 41.32% of the total transaction count. Impressive figures, but in retreat: USDT volume fell -14.99% year-over-year and the transaction count dropped -1.55%.
Over the same period, USDC posted a steady advance. USDC transaction count on NOWPayments jumped +209.02% between H1 2025 and H1 2026, while volume grew +101.63%. USDC’s share of stablecoin volume on the platform rose from 5.52% to 8.95%, and its share of transaction count moved from 2.88% to 4.94%.
| Metric (H1 2026) | USDT | USDC |
|---|---|---|
| Volume share | 66.92% | 8.95% |
| Transaction count share | 41.32% | 4.94% |
| YoY volume change | -14.99% | +101.63% |
| YoY transaction change | -1.55% | +209.02% |
Beyond NOWPayments’ own activity, stablecoins now serve as full-blown business infrastructure. The platform cites several concrete use cases: affiliate commission settlements, vendor and contractor payments, seller withdrawals on marketplaces, payroll for distributed teams, treasury transfers, and payouts to creators or influencers. Companies arbitrage between TRON, Ethereum, BNB Smart Chain, Polygon, Base, and Arbitrum based on cost, settlement speed, and recipient compatibility.
« For many businesses, the question is no longer necessarily USDT or USDC. Supporting both can offer greater flexibility across markets, partners, and operational requirements. »
Kate Lifshits, Chief Business Development Officer at NOWPayments
USDC takes the lead at the global level
Aggregated market indicators confirm a structural shift. According to blockchain analytics firm Allium, total stablecoin transfer volume hit a record $1.8 trillion in February 2026, of which $1.26 trillion for USDC (around 70%) and $514 billion for USDT. On March 13, 2026, Mizuho Securities extended the analysis: year-to-date, USDC adjusted volume stood at $2.2 trillion versus $1.3 trillion for USDT, giving USDC a 64% share of combined adjusted flows. Adjusted volume excludes wash trading and internal transfers, reflecting real economic activity (payments, settlements, DeFi, institutional transfers).
| Source | Period | USDT | USDC |
|---|---|---|---|
| Allium | February 2026 | $514B | $1,260B |
| Mizuho (YTD) | March 2026 | $1,300B | $2,200B |
| Visa share | June 2026 | ~25% | ~70% |
Visa’s on-chain dashboard corroborates the trend. In June 2026, adjusted stablecoin volume hit a record $1.79 trillion, up 63% from May ($1.1T) and 125% from June 2025 (around $795B). For the full first half of 2026, total adjusted volume reached $8.82 trillion, surpassing the $5.8T recorded for the entirety of 2024 and approaching the 2025 record of $10.8T. Over this period, USDC accounted for approximately 70% of adjusted volume, against 25% for USDT.
Historical erosion of USDT dominance
The 2026 shift fits a long-term trend. In 2020, USDT accounted for nearly 90% of adjusted volume and USDC less than 10%. By 2022, USDC had already climbed to roughly 45% of adjusted volume, illustrating the gradual erosion of Tether’s dominance in payments and settlements.
| Year | USDT share (adjusted volume) | USDC share (adjusted volume) |
|---|---|---|
| 2020 | ~90% | <10% |
| 2022 | ~55% | ~45% |
| H1 2026 | ~25% | ~70% |
Regulation and institutional adoption
The regulatory environment is clearly shaping preferences. In the United States, the clarity provided by the GENIUS Act has worked in USDC’s favor. On February 25, 2026, the Office of the Comptroller of the Currency (OCC) issued a notice of proposed rulemaking (NPRM) detailing licensing conditions, capital standards, redemption rules, and oversight for qualifying banks and issuers. This advance has reinforced USDC’s appeal for institutions subject to compliance obligations, thanks to its monthly attestations and transparent reserve reports.
In Europe, the Markets in Crypto-Assets (MiCA) regulation does not ban USDT, but regulated exchanges, custodians, and payment service providers may impose restrictions under their compliance obligations. The result is a two-speed market: USDT remains king in the retail segment and emerging markets, while USDC dominates institutional rails and B2B settlements.
Institutional adoption is accelerating. Banks such as Standard Chartered and BNY have launched USDC-based services rather than build their own infrastructure. Mizuho raised its price target on Circle (USDC’s issuer) from $100 to $120, calling USDC’s volume leadership a « key fundamental factor. » Partnerships with Visa, Stripe, PayPal (via PYUSD expansion), and BlackRock have strengthened USDC’s integration into treasury operations and B2B settlements.
On the supply side, USDC reached a new peak near $81.1 billion, with more than $3 billion minted in the first week of March 2026, reflecting sustained institutional demand. By comparison, USDT’s supply remained relatively stable around $184 billion, marking divergent trajectories.
« USDC’s leadership in volume is a key fundamental factor that justifies raising Circle’s price target. »
Mizuho Securities, research note, March 2026
Tether strikes back with USAT
In response to USDC’s rise, Tether launched USAT (USA₮) on January 27, 2026, a stablecoin positioned for institutional and regulated U.S. flows. USAT was listed early on several major exchanges, signaling scaling ambitions. The bet is to retain the retail base while emerging alongside USDC in the regulated segment, without cannibalizing USDT’s existing supply.
Outlook for the second half of 2026
Forecasts point to a possible test of the $350 to $400 billion mark in total stablecoin market cap if inflows persist. USDC should maintain its lead in adjusted volume and institutional rails, while USDT will likely retain its dominance in supply and presence among retail and emerging markets. Several compliant issuers could coexist, but risks remain: faster-than-expected USAT adoption, changes in reserve requirements, macroeconomic factors influencing Treasury demand, or geopolitical developments that could spur stablecoin usage as a dollar proxy.
In summary, NOWPayments data confirms that USDT retains the advantage in transaction volume on the platform, but USDC is posting spectacular annual growth. At the global market level, adjusted metrics (Visa, Allium, Mizuho) show that USDC has taken a clear lead in adjusted volume, driven by U.S. regulatory clarity, institutional partnerships, and the expansion of real-world use cases. Tether’s USAT launch and European regulatory developments under MiCA are set to shape the competition in the months ahead.
Sources
- Markets Insider — USDT Still Leads Stablecoin Volume as USDC Gains Momentum
- Stablecoin Insider — How USDC overtook USDT in volume in 2026
- CoinDesk — Circle’s USDC is leaving Tether behind in the stablecoin volume race
- Binance Square — NOWPayments report analysis
- Investing.com — USDT Still Leads Stablecoin Volume as USDC Gains Momentum
This article is published for informational and educational purposes only. It does not constitute investment advice. Do your own research (DYOR) before making any decision.
