USDT Gains 43% Share on BitPay as USDC Drops 29%

In a significant shift within the stablecoin market, USDT has been gaining ground on BitPay, while USDC's dominance has been waning. According to BitPay data, USDC's share of transactions has decreased from 85% in January 2024 to 56% by May 2025. Concurrently, USDT's share has surged to 43%. This trend is even more pronounced in transaction volume, with Tether handling over 70% of the total stablecoin transaction volume on BitPay since March.

This shift is notable given USDC's strong regulatory positioning, particularly in Europe under MiCA, and its high-profile public listing in June. Despite these advantages, Tether has opted for a more defiant stance, choosing not to comply with MiCA and shelving its IPO ambitions. This strategic difference has not hindered USDT's growth, as it continues to attract users and merchants, especially in Europe.

BitPay’s chief revenue officer highlighted that while USDC still leads in transaction count, the rapid growth in preference for USDT is reshaping the landscape. Market-wise, USDC has nearly doubled its market cap over the past year, growing faster than USDT in percentage terms. However, Tether remains the largest stablecoin by overall valuation, indicating that the competition between the two stablecoins is far from over.