Markets
Tether USDT market share drops from 82% to 74%.
- Tether USDT Market Share Drops From 82% To 74%
- Regulated stablecoins like USDC are gaining market share, demonstrating changing market preferences.
With the growing adoption of cryptocurrencies and their global spread, stablecoins have become a favorite among investors and a store of value for many cryptocurrency users.
In recent years, Tether has been the dominant cryptocurrency in a highly concentrated stablecoin market. Despite its dominance, market sentiment is changing and Tether’s dominance is slowly fading.
At the time of writing, Tether USDT trading volume has decreased by 8.8% in 24 hours, settling at $38.65 billion.
Tether USDT Market Share Declines
According to Kaiko’s report, Tether’s market share is continuously declining. It was also discovered that USDT’s market share on centralized exchanges has dropped from 82% to 74% in 2024.
The decline comes as a larger shift in market sentiment and stablecoin regulation comes as other stablecoins, such as FDUSD, have taken over the market in the past year, especially after partnering with Binance.
These factors have challenged Tether’s dominant position in the market.
Increased competition
As reported by AMBC EncryptionUSDC trading volume rose to $23 billion in 2024 from a low of $9 billion in 2023. USDC’s rise comes from increased demand for compliant stablecoins.
Major investors, especially institutional ones, are slowly switching to legally accepted stablecoins to ensure compliance with operational requirements, especially in the European Union.
Source: Kaiko
As reported by Kaiko, USDC’s market share has increased to 12%, approaching that of FDUSD at 14%.
With increased trading on major cryptocurrency exchanges such as OKX, Binance, and Bybit, USDC has become a serious competitor to Tether. Additionally, CIRCLE’s MICA approval has significantly increased USDC’s market share and trading volume.
Furthermore, as trade declarations shared on X, USDC is surpassing Tether in terms of flexibility and accessibility. He noted that,
“USDC’s supply is more elastic than Tethers’. It offers zero minting fees and is more accessible, as Tethers’ handling involves long transfer times to smaller banks in the Virgin Islands.”
EU Regulation of Stablecoins
In particular, the European regulation on cryptocurrency markets (MICA) is set to challenge the continued dominance of non-compliant stablecoins.
With MICA requirements in place, exchanges like Kraken may be forced to reconsider their stance on stablecoins like Tether. These regulations have major players concerned about their EU operations, even for approved stablecoins.
For example, Tether’s CEO argued that these requirements could lead to complications among stablecoin issuers.
Overall, MICA has set a precedent that will challenge current cryptocurrency operations in the European Union.
Source: Kaiko
Tether Awaits Suspension of USDT Redemptions
According to official reports, Tether is expected to suspend USDT redemptions on major blockchains by September 2025.
Source: X
Francis noticed this development on X (formerly Twitter), sharing that,
“Tether has announced that it will stop minting USDT on EOS and Algorand starting today. However, USDT redemptions on these blockchains will continue for the next 12 months.”
This comes after the 2023 suspension of Tether USDT on other blockchains such as Bitcoin, Kusama, and Bitcoin Cash. For the next 12 months, Tether will suspend operations within more with the aim of using effective networks for better user experience and overall stability for the stablecoin.