Circle’s USDC added roughly $2 billion in supply during the first quarter of 2026, pulling ahead of rival Tether at a moment when the broader crypto market was contracting. It marked the sharpest divergence between the two largest stablecoin issuers since the bear market of mid-2022. Related Reading: Bitcoin Stumbles Hard: The Worst Q1 In Years Raises Big Questions USDC Gains As Tether Loses Ground While USDC grew, Tether’s USDT shed approximately $3 billion over the same period. Reports indicate USDC has been gaining traction in trading and on-chain transactions, with transfer activity hitting a record high in February