Circle’s USDC Boosts BTC Liquidity, Encroaching on USDT’s Dominance

USDC Gains Ground in BTC Markets

Recent data shows USDC climbing from 15% to 24% of the deepest 1% liquidity in BTC trading pairs, highlighting a move away from traditional fiat pairs toward regulated, USD-backed digital dollars. As USDC supply grows, it has also become the fourth most active smart contract on Ethereum, with daily fees indicating strong on‑chain usage.

Impact on Stablecoin Landscape

While USDT continues to dominate overall volumes, USDC is gaining significant traction, covering around 10.5% of all BTC trading volume and supporting $5–7 billion in daily trading across centralized and decentralized platforms. Its rise reflects increasing demand for fully regulated stablecoins in the wake of transparency and compliance trends.

Why This Matters

• Regulatory confidence: USDC’s fully backed reserves and transparency make it a go-to stablecoin for traders seeking compliance and reduced counterparty risk.
• Deeper market integration: Growth in liquidity enhances efficiency in BTC trading pairs and strengthens USDC’s role in global crypto finance.
• Network adoption: As a top smart contract on Ethereum, USDC demonstrates expanding utility across DeFi and cross-chain systems.

Outlook

If USDC continues this momentum, it may further weaken fiat and USDT dominance in BTC liquidity pools. For users and institutions seeking regulated, transparent options, Circle’s stablecoin offers both liquidity depth and trust—key factors in broader crypto adoption.