Based on latest figures, USDT dominance dropped to just about 60% on August 29. It is the weakest maintain Tether has had since March 2023.
Nevertheless, USDT’s market cap is $168 billion and Circle’s USDC is $70.37 billion — each all-time highs. So the bodily magnitude of the cash is bigger, however the share of the market underneath every’s management is transferring.
Rising Competitors Make Inroads
According to figures from DefiLlama, the primary half of 2024 noticed USDT dominance at roughly 70%. USDC then had round 18% of the market.
That determine has risen and is now at roughly 30%. DAI, which used to seize about 3.5%, has dropped to 1.85%. These changes point out cash is transferring between stablecoins and never exiting the area.
Source: DefiLlama
One New Token Stands Out
Ethena’s USDe stands out. Introduced in December 2024, USDe already has 4.32% dominance with a market capitalization of $12.25 billion.
That’s a fast ascent for a token that had simply come out late final yr. Trump-associated World Liberty Financial’s USD1 holds 0.88% market share.
Data have revealed these figures along with the larger market-cap numbers for USDT and USDC, which makes it clear: competitors is rising whereas whole numbers rise.
Source: DefiLlama
Regulatory Pressure Shapes Markets
Tether’s market share loss isn’t merely about opponents. It has additionally refused to implement Europe’s MiCA stablecoin laws, and exchanges deleted USDT from sure European listings.
The US has enacted the GENIUS Act that features new transparency obligations for stablecoin issuers. Those reforms make compliance an excellent bigger consideration in who captures market share sooner or later.
Investors Are Choosing Options
Some establishments and merchants seem to love stablecoins which are backed by issuers that decide to new laws. Others are experimenting with newer tokens or fashions that supply various sorts of backing or schemes.
That is one motive why USDC’s share is increasing quickly and why smaller tokens reminiscent of USDe can purchase share quickly. But absolutely the growth of USDT and USDC signifies the business as an entire is rising even when its inner composition shifts.
Market Share Is Not Static
This part ought to remind readers that market share can shift even when totals rise. USDT’s drop to 60% is significant as a result of it marks the primary time since March 2023 that dominance touched these ranges.
It additionally factors to a market the place compliance selections, product design, and contemporary entrants all matter.
Featured picture from Unsplash, chart from TradingView
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