USDC, the second-largest stablecoin by market capitalization, has been shedding market share in opposition to its foremost rival, Tether’s USDt, on the most important cost platform BitPay in 2025.
After dominating stablecoin transactions on BitPay in 2024, Circle’s USDC (USDC) noticed its transaction share plummet in opposition to Tether’s USDt (USDT), based on BitPay knowledge shared with Cointelegraph.
In January 2024, USDC’s transaction share on BitPay accounted for 85%, in contrast with USDT’s 13%. By Might 2025, USDC’s share had dropped to 56%, whereas USDT’s had elevated to 43%.
The change in dynamics got here regardless of the optimism round Circle’s public launch in early June in addition to sure regulatory benefits over Tether’s USDT, significantly within the European Union below the Markets in Crypto-Property Regulation (MiCA).
Tether’s USDT high stablecoin by quantity on BitPay
Along with narrowing the hole with its foremost competitor by transaction depend, Tether’s USDT stablecoin has additionally led the way in which in cost quantity.
“In 2024, USDC was the token mostly used. Nevertheless, beginning in March of 2025, USDT gained a large share of transaction quantity, exceeding 70% of stablecoin quantity processed by BitPay,” the crypto cost agency mentioned.
In keeping with BitPay, the shift to UDST may be attributed to “each a development in total stablecoin transactions” in addition to a “swing in current retailers and prospects preferring USDT over USDC.”
BitPay’s chief income officer, Invoice Zielke, mentioned the platform has a “sizable base of customers and retailers in Europe,” however stays centered on rising in the US.
“In 2024, USDC transaction depend was virtually double that of USDT,” Zielke famous, including that USDC remains to be the most well-liked stablecoin on BitPay by transaction depend, although it has tumbled in 2025.
Tether rejects each MiCA and a public launch
Tether’s main place in cost volumes and rising dominance in transaction depend on BitPay in opposition to USDC provide an fascinating perception, given the numerous variations between Tether and Circle, together with their approaches to regulation.
Whereas Circle grew to become the primary international stablecoin issuer to obtain regulatory approval below Europe’s MiCA in July 2024, Tether has repeatedly criticized some MiCA regulation points, explicitly refusing to adjust to the framework in Europe.
In June, Tether CEO Paolo Ardoino additionally confirmed that Tether has no intention to run an preliminary public providing regardless of Circle debuting public buying and selling on June 5 after elevating $1.05 billion in an upsized providing.
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Regardless of USDC shedding steam in opposition to USDT on BitPay in 2025, USDC has continued to see notable development in market capitalization previously 12 months.
In keeping with knowledge from CoinGecko, USDC noticed its market cap surge as a lot as 88% previously 12 months from round $33 billion to its present $61.7 billion. Within the meantime, USDT elevated its market worth by 40% over the identical interval, from $112.5 billion to $158.3 billion.
Moreover, USDC market cap has surged 41% year-to-date, whereas USDT market worth has edged up simply 15.5%.
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