USDT leads payments, USDC dominates DeFi as stablecoins diverge: Dune
Dune data reveals that Tether's USDT dominates onchain payments while Circle's USDC powers DeFi, showing stablecoins are evolving into chain-specific financial products.
New data from Dune Analytics reveals a clear functional split between the two largest stablecoins, with Tether's USDT dominating onchain payments and Circle's USDC powering decentralized finance (DeFi) activity.
According to Dune, USDT accounts for the majority of stablecoin transaction volume on payment-focused blockchains such as Tron and Solana, while USDC is the preferred stablecoin on Ethereum and its layer-2 networks for DeFi protocols like lending, trading, and yield farming. This divergence highlights how stablecoins are evolving into chain-specific financial products rather than interchangeable dollar proxies.
For cryptocurrency traders, the data underscores the importance of blockchain selection when using stablecoins. USDT's liquidity on payment networks makes it ideal for remittances and merchant settlements, while USDC's deep integration with DeFi smart contracts offers efficiency for onchain yield strategies. Traders can monitor these flows on NowPrice's live crypto dashboard to gauge network activity and potential shifts in stablecoin supply.
Looking ahead, the trend may accelerate as regulatory frameworks for stablecoins take shape in the US and Europe. Circle's compliance-first approach could further entrench USDC in institutional DeFi, while Tether's focus on emerging markets and payment corridors may strengthen USDT's grip on real-world transactions. The next major data point will be monthly stablecoin supply reports from Dune and CoinGecko, which will show whether the divergence widens or converges.