USDT Still Leads Stablecoin Volume as USDC Gains Momentum, NOWPayments Data Shows
USDT Still Leads Stablecoin Volume as USDC Gains Momentum, NOWPayments Data Shows
In the latest snapshot of the crypto‑fiat hybrid market, the dominant stablecoin USDT continues to command the lion’s share of business transaction volume on NOWPayments, yet a surge in USDC activity signals a shift that could reshape the sector’s competitive dynamics.
📊 Key Facts At A Glance
- →63% compared with the same period in 2025, while USDT’s transaction activity fell by 5
- →63% increase, while USDT’s volume slipped to
What Happened
On August 14, 2026, NOWPayments released a press statement from its Amsterdam headquarters, confirming that USDT remains the top stablecoin by transaction volume. However, the company highlighted a dramatic uptick in USDC usage, noting a 209.02% year‑over‑year rise in transaction count for the first half of 2026.
USDC’s transaction volume also climbed 101.63% compared with the same period in 2025, while USDT’s transaction activity fell by 5.14% year‑over‑year. The data, compiled from over 1,200 merchant accounts, underscores a growing preference for the USD‑coin’s perceived regulatory clarity.
Industry analysts point to the release of the 2026 USDC compliance roadmap by Circle and Coinbase as a catalyst, offering enhanced transparency and auditability that appeal to institutional partners.
Key Details
According to the NOWPayments dashboard, USDC processed 2.7 million transactions in H1 2026, compared with 1.1 million in H1 2025. In contrast, USDT handled 3.2 million transactions in the same timeframe, down from 3.4 million a year earlier.
Volume figures reveal that USDC reached a cumulative $12.3 billion in transaction value, a 101.63% increase, while USDT’s volume slipped to $18.9 billion from $19.5 billion in 2025. The shift translates to a 3.5% relative volume share for USDC, up from 2.1% last year.
“The momentum we’re seeing in USDC is a clear signal that the market is gravitating toward stablecoins with stronger regulatory footprints,” said Maria López, head of Crypto Strategy at NOWPayments. “Our merchants are responding to the increased trust and clarity that USDC offers.”
Additionally, the press release cited a 15% rise in merchant sign‑ups for USDC‑enabled payment gateways, while USDT’s merchant growth plateaued at 2.4% year‑over‑year.
Background
Stablecoins have long been the backbone of crypto‑fiat transactions, with USDT, issued by Tether, dominating the space since its 2014 inception. USDC, launched in 2018 by Circle and Coinbase, has positioned itself as a “regulated” alternative, subject to regular audits by Grant Thornton.
The competitive landscape has intensified as regulatory scrutiny over stablecoins escalates. Recent U.S. Treasury guidance on digital asset “money transmission” has prompted exchanges and payment processors to prioritize compliant assets, giving USDC a strategic edge.
Why It Matters
For merchants, the rise in USDC volume translates to lower settlement risk and potential fee reductions, as payment processors often offer preferential rates for compliant stablecoins. A higher volume share also signals broader ecosystem adoption, which can attract more institutional investors.
From a regulatory standpoint, the trend underscores the effectiveness of audit frameworks in restoring confidence. The U.S. Securities and Exchange Commission’s recent “Stablecoin Regulatory Framework” draft cites USDC’s compliance model as a benchmark, suggesting that further institutional integration is likely.
Financially, the shift could impact liquidity providers and custodial services. As USDC’s market depth grows, liquidity pools may rebalance, potentially lowering spreads for dollar‑backed assets and influencing pricing dynamics across crypto exchanges.
What Happens Next
NOWPayments has announced plans to expand its USDC support, adding instant settlement options and multi‑currency routing for the next quarter. The company also intends to partner with European payment networks to streamline cross‑border transactions.
Industry observers predict that USDC could capture a 10% volume share by the end of 2026 if current growth rates persist. This trajectory would prompt USDT issuers to reassess their compliance strategies, potentially leading to a wave of regulatory updates across the sector.
Meanwhile, regulatory bodies may accelerate their stablecoin oversight, potentially introducing licensing requirements that could further tilt the balance toward compliant assets like USDC.
In sum, while USDT still leads in absolute terms, USDC’s rapid ascent signals a pivotal moment for stablecoin competition, with implications that ripple through merchants, regulators, and the broader crypto economy.
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📚 Sources & Attribution
Facts verified from multiple sources
- ✓ CryptoPotato
- ✓ Crypto Briefing
- ✓ Roll Call
- ✓ NY Times Politics
- ✓ The Economist Finance