Tether Loses Its Shine As Market Dominance Slides To 60%

Based on recent figures, USDT dominance dropped to nearly 60% on August ￰0￱ 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 ￰1￱ the physical magnitude of the coins is greater, but the share of the market under each’s control is ￰2￱ Competitors Make Inroads According to figures from DefiLlama , the first half of 2024 saw USDT dominance at approximately 70%. USDC then had around 18% of the ￰3￱ 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 ￰4￱ New Token Stands Out Ethena’s USDe stands ￰5￱ in December 2024, USDe already has 4.32% dominance with a market capitalization of $12.25 billion. That’s a quick ascent for a token that had just come out late last year. Trump-associated World Liberty Financial’s USD1 holds 0.88% market ￰6￱ 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 ￰7￱ Pressure Shapes Markets Tether’s market share loss isn’t merely about ￰8￱ has also refused to implement Europe’s MiCA stablecoin regulations, and exchanges deleted USDT from certain European ￰9￱ US has enacted the GENIUS Act that includes new transparency obligations for stablecoin ￰10￱ reforms make compliance an even larger consideration in who captures market share in the ￰11￱ Are Choosing Options Some institutions and traders appear to like stablecoins that are backed by issuers that commit to new ￰12￱ are experimenting with newer tokens or models that offer alternative types of backing or ￰13￱ is one reason why USDC’s share is expanding rapidly and why smaller tokens such as USDe can acquire share ￰14￱ the absolute expansion of USDT and USDC indicates the industry as a whole is growing even if its internal composition ￰15￱ Share Is Not Static 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 ￰16￱ also points to a market where compliance choices, product design, and fresh entrants all ￰17￱ image from Unsplash, chart from TradingView