The Stablecoin Market Shifts as USDT’s Grip Weakens
Stablecoin competition has intensified, marked by USDT’s dominance dipping below 60%, reaching 59.45%. This drop,noted on August 29,signals a significant market change since March 2023.
Encroaching upon Tether’s position, Circle’s USDC is carving out nearly 30% of the market share.Previously, in the first half of 2024, USDT reigned at around 70%, while USDC held between 18% and 19%.
- DAI’s influence decreased from 3.5% to 1.86%.
- Ethena’s USDe, introduced in December 2024, emerged swiftly, capturing 4.34% of the market with a $12.275 billion valuation.
- Trump World Liberty Financial’s USD1 holds a small but notable 0.88% share.
Regulatory pressures also impact Tether. It refuses to align with Europe’s MiCA stablecoin rules, leading to delistings on major platforms. Similarly, the US GENIUS Act, requiring greater stablecoin issuer transparency, may challenge Tether further.
Despite these shifts, both Tether and Circle are experiencing growth. USDT and USDC’s market caps stand at $168.43 billion and $70.378 billion, respectively.
This evolving landscape highlights increasing regulatory scrutiny and competition’s role in reshaping the stablecoin sector.
