Based on recent data from DeFiLlama, Tether's USDT stablecoin dominance has declined to approximately 60% as of August 29, 2025, marking its lowest level since March 2023. This represents a significant drop from the first half of 2024, when USDT maintained around 70% market share.
Despite this relative decline in dominance, the absolute market capitalization of major stablecoins continues to grow. USDT's market cap stands at a record $168 billion, while Circle's USDC has reached $70.37 billion - both at all-time highs. The shifting market shares indicate capital moving between stablecoins rather than exiting the ecosystem entirely.
Circle's USDC has emerged as the primary beneficiary of this shift, growing from approximately 18% market share in early 2024 to nearly 30% currently. Meanwhile, Ethena's USDe has demonstrated remarkable growth since its December 2024 launch, already capturing 4.32% dominance with a market capitalization of $12.25 billion. DAI's dominance has declined from about 3.5% to 1.85% during this period.
Regulatory developments are playing a crucial role in these market dynamics. Tether's refusal to comply with Europe's MiCA stablecoin regulations has led to its delisting from certain European exchanges. Additionally, the recent passage of the US GENIUS Act, which imposes new transparency requirements on stablecoin issuers, is creating a more competitive landscape where compliance becomes a significant factor in market share allocation.