Tether's USDT Surges 30% on BitPay as USDC's Share Drops 29%

In 2025, Tether's USDT has made significant inroads against USDC on the BitPay payment platform, narrowing the gap in both transaction counts and payment volumes. This shift is a notable change from the previous year, where USDC dominated stablecoin transactions on BitPay. In January 2024, USDC's transaction share on BitPay was 85%, while USDT's share was only 13%. However, by May 2025, USDC's share had dropped to 56%, with USDT's share surging to 43%. This reversal occurred despite Circle's public launch in early June and the regulatory advantages USDC held, particularly under the Markets in Crypto-Assets Regulation (MiCA) in the European Union.

The shift in favor of USDT is not limited to transaction counts. In 2024, USDC was the most commonly used token on BitPay. However, 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 shift towards USDT highlights a growing preference for Tether's stablecoin, despite Circle's regulatory compliance and public launch.

Tether's approach to regulation differs markedly from Circle's. While Circle became the first global stablecoin issuer to receive regulatory approval under Europe’s MiCA in July 2024, Tether has been critical of certain aspects of the framework and has refused to comply with it. 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. According to data, 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. Year-to-date, USDC's market cap has surged by 41%, while USDT's market value has edged up by just 15.5%. This indicates that while USDC is losing ground on BitPay, it remains a significant player in the broader stablecoin market.