USDT Faces Market Strain as USDC Surges to Record $219B Volume in April

The cryptocurrency market witnessed a dramatic shift in stablecoin dynamics in April 2025, with USDC achieving record trading volumes while USDT showed signs of decline. Circle’s strategic partnership with Binance has propelled USDC to new heights, demonstrating the growing importance of strategic alliances in the stablecoin sector. Meanwhile, Tether’s USDT faces challenges as its trading volume on centralized exchanges continues to contract, signaling potential changes in stablecoin dominance.

USDC Trading Volume Hits Record $219 Billion in April Amid Binance Partnership

USDC’s trading volume surged to an unprecedented $219 billion in April, marking a doubling of activity since January. The growth stems largely from Circle’s strategic partnership with Binance, which has amplified the stablecoin’s market reach.

While USDC thrives, the broader stablecoin market shows signs of strain. Tether’s USDT has seen its trading volume on centralized exchanges nearly halve between November 2024 and April 2025—a decline attributed not to issuer-specific problems but to a wider market cooldown.

Tether Partners with LINE to Expand USDT Adoption in Asia

Tether, the issuer of the USDT stablecoin, has forged a strategic alliance with LINE, the popular Asian messaging app, to integrate USDT into its platform. The partnership, announced on May 7, 2025, will enable LINE’s 196 million monthly users to send, receive, and transact with USDT directly within the app’s Mini DApp ecosystem and self-custodial wallet.

LINE dominates markets like Japan, Thailand, Taiwan, and Indonesia, where it serves as a multipurpose platform for messaging, payments, and commerce. This integration positions USDT at the heart of a high-traffic digital ecosystem, potentially accelerating stablecoin adoption across Asia’s retail and remittance sectors.

Binance’s Proof of Reserves Shows Overcollateralization for Major Cryptocurrencies

Binance’s May 2025 proof of reserves report demonstrates robust asset backing, with reserves exceeding customer balances by 2%+ for flagship cryptocurrencies. The exchange holds 616,886 BTC against 604,886 BTC in client assets—a 102.06% coverage ratio. Similar overcollateralization appears in Tether reserves, where 29.6 billion USDT backs liabilities with a 102.07% buffer.

The monthly audit covers 37 digital assets, reinforcing Binance’s position as an industry leader in transparency. Such disclosures have become critical differentiators for exchanges since FTX’s collapse, with institutional traders particularly attentive to reserve ratios during periods of market volatility.