Based on recent figures, USDT dominance dropped to nearly 60% on August 29. It is the weakest hold Tether has had since March 2023.
Nevertheless, USDT’s market cap is $168 billion and Circle’s USDC is $70.37 billion — both all-time highs. So the physical magnitude of the coins is greater, but the share of the market under each’s control is moving.
That figure has risen and is now at approximately 30%. DAI, which used to capture about 3.5%, has dropped to 1.85%. These adjustments indicate money is transferring between stablecoins and not exiting the space.
Ethena’s USDe stands out. Introduced in December 2024, USDe already has 4.32% dominance with a market capitalization of $12.25 billion.
Data have revealed those figures together with the bigger market-cap numbers for USDT and USDC, which makes it clear: competition is increasing while total numbers rise.
Tether’s market share loss isn’t merely about competitors. It has also refused to implement Europe’s MiCA stablecoin regulations, and exchanges deleted USDT from certain European listings.
Some institutions and traders appear to like stablecoins that are backed by issuers that commit to new regulations. Others are experimenting with newer tokens or models that offer alternative types of backing or schemes.
That is one reason why USDC’s share is expanding rapidly and why smaller tokens such as USDe can acquire share rapidly. But the absolute expansion of USDT and USDC indicates the industry as a whole is growing even if its internal composition shifts.
This phase should remind readers that market share can shift even when totals rise. USDT’s drop to 60% is meaningful because it marks the first time since March 2023 that dominance touched these levels.
It also points to a market where compliance choices, product design, and fresh entrants all matter.
Featured image from Unsplash, chart from TradingView
