USDT Gains 30% Share on BitPay as USDC Drops 29%

In 2025, Tether's USDT has made significant inroads into narrowing the gap with USDC on the BitPay payment platform. This shift is evident in both transaction counts and payment volumes, marking a notable change from the previous year. In January 2024, USDC dominated the stablecoin transactions on BitPay, with its share accounting for 85%, while USDT lagged behind at 13%. However, by May 2025, the landscape had changed dramatically. USDC's share dropped to 56%, while USDT's share surged 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 gained a significant share of the transaction volume, exceeding 70% of the stablecoin volume processed by BitPay. This change can be attributed to both an overall growth in stablecoin transactions and a preference shift among existing merchants and customers towards USDT.

BitPay's chief revenue officer, Bill Zielke, 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 broader trend in the stablecoin market, where Tether's approach to regulation and market strategy has resonated with a growing number of users and merchants.

Tether's leading position in payment volumes and its rising dominance in transaction count on BitPay offer intriguing insights into the competitive dynamics between Tether and Circle. While Circle received regulatory approval under Europe’s MiCA in July 2024, Tether has been critical of certain aspects of the framework and has explicitly refused to comply with it. Additionally, Tether CEO Paolo Ardoino 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 in transaction share on BitPay, it has continued to see notable 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. Additionally, USDC's market cap has surged 41% year-to-date, while USDT's market value has edged up just 15.5%. This indicates that while USDC may be losing ground on BitPay, it remains a significant player in the broader stablecoin market.