Tether (USDT) Remains the Dominant Stablecoin Despite Growing Competition from USDC

In the burgeoning realm of stablecoins, a fierce battle for dominance is unfolding. While several companies are vying for a piece of the pie, one name continues to reign supreme: Tether. With a staggering market share of 66% in April 2025, Tether has managed to maintain its leadership despite the increasing competition.

As the numbers clearly indicate, Tether's competitors, such as Uniswap and the next largest platform, have pale in comparison. According to Nansen's report, Tether has nearly three times more users and 50% more transactions than the next platform.

The report further reveals that Tether's business model is founded on the issuance of USDT in exchange for US dollars, which are then invested in very liquid and safe instruments, such as US Treasury bonds.

This strategy has proven highly successful, enabling Tether to generate nearly 14 billion dollars in profit in 2024. This exceptional profitability continues to guarantee it a leading position in the crypto asset field, even though competition is becoming increasingly fierce.

On the other hand, USDC, issued by Circle, is becoming an increasingly serious competitor in the stablecoin market. Since November 2024, this crypto asset has been experiencing notable growth, which is mainly attributed to a more favorable US regulatory environment.

However, USDC remains behind Tether in terms of market share, valued at about 28% of the market as of April 25, 2025.

The Nansen report highlights that institutions are seeking stability and liquidity, two criteria that Tether continues to meet in an unrivaled way.

"Institutions are entering DeFi in droves, and they are not easily satisfied," the report notes. "They want the best of both worlds: the stability and liquidity of institutions, and the speed and efficiency of DeFi."

While USDC is rapidly gaining popularity and other stablecoins are emerging, Tether still seems far from being dethroned. However, the crypto market dynamic could change as new regulations and technologies affect the sector.

Crypto investors will need to closely monitor these developments to adjust their strategy accordingly.