$USDC The trading volume with USDC doubles amid changing Stablecoin demand

Circle's stablecoin USDC reached $219 billion in monthly trading volume in April 2025, doubling its activity since January. The increase coincides with a partnership between Circle and Binance, which expanded the use cases of USDC across the global exchange platforms.

At the same time, the competing stablecoin USDT saw its trading volumes fall to about half during the same six-month period, according to data from analytics firm Kaiko.

The change comes as the price of Bitcoin fluctuates below the key thresholds of $90,000 and $95,000, levels it has struggled to maintain since late 2024.

Traders seem to favor stablecoins like USDC during periods of uncertainty, using them to hedge against volatility or exit positions without converting to traditional currencies. This behavior contrasts with previous cycles, where USDT often dominated trading pairs during market downturns.

The evolution of regulation may also influence preferences for stablecoins. The EU's MiCA framework, which will come into effect in mid-2025, imposes stricter transparency requirements on issuers.

Circle has considered that USDC complies with these standards, emphasizing monthly audits and reserve disclosures. Tether, which faced scrutiny in 2023 over the composition of its reserves, has yet to detail adjustments to meet MiCA standards.

While the growth of USDC reflects changing trader habits, its reliance on centralized exchanges like Binance introduces dependencies. ETHNews analysts point out that the utility of USDC in decentralized finance (DeFi) protocols remains limited compared to USDT, which still dominates lending and borrowing markets.