Dune data shows that the two largest stablecoins no longer compete directly with each other. USDT has practically monopolized the payments segment, while USDC has become the core asset for decentralized finance. This is no longer about rivalry, but about a division of labor.
Tether Has Taken Almost All Payments
In the first half of 2026, about $95 billion in identified commercial payments were processed through USDT, compared to $14 billion for USDC. The gap is nearly sevenfold. In the B2B settlements segment, where the volume reached $48 billion, USDT’s share was about 92%.
The structure of token holders on the Tron network — the largest for USDT — is especially telling. About 93% of the supply there is held in regular user wallets, not on exchanges. This is direct evidence that the token is used specifically for settlements and transfers, not for speculative trading. People hold USDT not because they are waiting for a convenient moment to sell, but because they intend to use it for payments or to send money to someone.
This structure did not arise by chance. Tron has historically offered minimal transfer fees, which is critical for remittances between countries where every penny matters to the recipient. This has made the network the de facto standard for cross-border payments in developing countries.
DeFi Chose USDC
In June, the daily velocity of USDC on the Base platform was about 20 times higher than the amount of its circulating capital, reflecting its widespread use in trading and DeFi.
The picture in decentralized finance is the mirror opposite. USDC on the Base network processed about $2.6 trillion in transfer volume in June — the highest among all token-blockchain pairs tracked by Dune. On Ethereum, the same stablecoin processed another $1.6 trillion.
The turnover rate is telling: the daily velocity of USDC on Base was about 20 times its circulating supply. This means that every dollar in USDC on this network changes hands on average twenty times per day. Such intensity is typical for trading and DeFi operations — loans, swaps, liquidity provision — rather than for simple storage of funds or one-off payments.
The distribution across networks is also telling. The supply of USDT is split almost evenly between Tron and Ethereum. USDC, despite gradually expanding to new blockchains, remains heavily concentrated on Ethereum — the network where most DeFi protocol activity is centered.
Why the Split Makes Sense
Previously, the market viewed USDT and USDC as direct competitors, differing mainly in issuer reputation and reserve transparency. Fresh data shows that the competition is actually not for the same user, but for different use cases.
For payments and transfers, low transaction costs and universal acceptance are critical — this is what Tether has cultivated for years through aggressive expansion on Tron and presence on dozens of exchanges worldwide. For DeFi, composability is more important: the ability to integrate the token into smart contracts, lending protocols, decentralized exchanges — here, Circle’s position has historically been stronger on Ethereum and compatible networks.
As a result, instead of a single stablecoin market, two parallel ones have formed, each with its own rules and its own leader. Together, USDT and USDC control about 83% of the entire stablecoin market, which is worth about $315 billion — the data covers more than 200 tokens on different blockchains.
The Regulatory Environment Is Changing in Parallel
The market split is happening against the backdrop of major changes in U.S. regulation. The GENIUS Act, adopted in 2025, created the first federal regulatory framework specifically for payment stablecoins, opening the way for banks and other companies to issue their own dollar digital assets.
Lawmakers are now discussing the broader CLARITY Act, which will determine when crypto assets fall under the jurisdiction of the Securities and Exchange Commission and when they are subject to the Commodity Futures Trading Commission. The law does not regulate stablecoins directly, but it forms a broader regulatory environment in which their issuers, exchanges, and DeFi platforms operate.
The bill passed the Senate Banking Committee in May, and a full Senate vote could theoretically have taken place before the August recess. However, analytics firm Galaxy recently lowered the probability of the bill passing to 50% — lawmakers simply do not have enough time before the break.
What This Means for the Market
The division of USDT and USDC into niches will likely only intensify. Each issuer is incentivized to deepen its presence in the niche where it has already earned user trust, rather than spending resources on direct competition.
For other market participants — new stablecoins, regional issuers — this creates room to maneuver: it is pointless to compete directly with the leaders in their strong segments, but there are still niches at the intersection of payments and DeFi, as well as specialized markets in certain regions where the largest players have not yet reached.
Read More: How the Japanese Bond Market Could Crash the Stock and Bitcoin Rally
