Stablecoin duopoly ending as USDT, USDC dominance falls to 84%

Tether’s USDt and Circle’s USDC, the two leading stablecoins, have lost over 5% of their combined market share since October 2024, indicating a shift in the stablecoin sector. Industry analyst Nic Carter noted their dominance peaked at 91.6% in March 2024, valued at around $140 billion, but has since declined to about 83.6%. Factors influencing this change include increased competition from new stablecoins focused on providing yields, alongside evolving regulations. Among the notable competitors, Ethena’s USDe has emerged as a significant player, achieving a supply of $14.7 billion. As banks also consider entering the stablecoin market, the landscape is poised for further change. Carter predicts ongoing competitive pressure and new entrants will challenge the established dominance of USDT and USDC.

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