Tether's USDT gains 30% share on BitPay as USDC drops 29%

Tether's USDT has made significant inroads against Circle's USDC on the BitPay payment platform, marking a notable shift in user and merchant preferences. In January 2024, USDC held an 85% transaction share on BitPay, while USDT's share was only 13%. By May 2025, USDC's share had dropped to 56%, with USDT surging to 43%. This transition occurred despite Circle's public listing in June and its regulatory advantages under Europe’s Markets in Crypto-Assets Regulation (MiCA).

The shift in favor of USDT is not limited to transaction counts. Starting in March 2025, USDT began to lead in payment volume, exceeding 70% of the stablecoin volume processed by BitPay. This change can be attributed to both an overall increase in stablecoin transactions and a preference shift among existing merchants and customers towards USDT. BitPay's Chief Revenue Officer noted that while USDC remains the most popular stablecoin by transaction count, its dominance has significantly waned in 2025. The platform, which has a substantial user and merchant base, is also focused on expanding its presence.

The competition between the two stablecoin issuers reflects stark differences in regulatory strategy. Circle became the first global stablecoin issuer to secure MiCA approval in July 2024, positioning itself to comply with evolving European frameworks. In contrast, Tether has openly rejected MiCA compliance, citing concerns with specific regulatory provisions. Additionally, Tether CEO confirmed that Tether has no plans for an initial public offering, contrasting with Circle's public trading debut in June 2025.

Despite USDC's decline on BitPay, it has continued to see substantial growth in market capitalization. USDC's market cap surged by 88% in the past year, from around $33 billion to $61.7 billion. In comparison, USDT's market value increased by 40% over the same period, from $112.5 billion to $158.3 billion. This indicates that while USDC is losing ground on BitPay, it remains a significant player in the broader stablecoin market.