Tether’s share of the stablecoin market has dropped below 60% for the first time in more than two years, signaling a shift in an industry that continues to expand at unprecedented rates.
Data from DeFiLlama shows the issuer’s market dominance fell to 59.55%, its lowest level since March 2023, even as the broader stablecoin sector reached a fresh all-time high above $283 billion.
Back in March 2023, a temporary depeg of Circle’s USDC pushed users toward Tether’s USDT, allowing it to consolidate its lead. By November 2024, Tether commanded nearly 70% of the sector, cementing its role as the industry’s dominant asset.
However, that position began to erode in 2025 as new players gained ground.
Traditional financial firms, including Bank of America, have entered the fray, while blockchain-native challengers such as Ripple’s RLUSD are capturing significant market share.
Moreover, regulatory momentum, particularly the passage of the GENIUS Act, has reinforced the competitive environment.
Analysts say these rules could accelerate institutional adoption and expand the market well beyond its current size. Coinbase has projected that the total value of stablecoins could reach $1.2 trillion by 2028 under these conditions.
Despite losing ground, Tether remains the sector’s largest issuer by a wide margin. As of press time, USDT maintains a market capitalization of $168 billion, which is twice that of Circle’s USDC, its closest rival.
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