Tether’s Market Share Drops Below 60% in August 2025

Tether’s stablecoin market share has dipped below 60% for the first time since March 2023. This decline is documented by DeFiLlama, noting that USDT’s market cap remains vast, with competition from USDC nearing a 30% market share.

Tether’s declining market share indicates growing competition within stablecoins, driven by new institutional entries. Circle’s USDC and Ripple’s RLUSD are notable entrants gaining traction amid increased stability.

Tether Holdings Ltd.

Tether Holdings Ltd. experienced a drop in its stablecoin market dominance, dropping below 60% for the first time since March 2023. Such dynamics highlight the increasingly competitive landscape in the market of stablecoins, as evidenced by shifts reported in Tether Market Share Drops. Key leaders Paolo Ardoino and Jean-Louis van der Velde have not issued statements on this recent shift. DeFiLlama reports that USDT’s share was 59.55% as of the end of August 2025.

Crypto Sector Dynamics

The crypto sector is seeing a redistribution of market share, with Circle’s USDC approaching 30% and Ripple’s RLUSD increasing its footprint. Traditional finance firms are also entering the space, spurred by the passing of the GENIUS Act.

Market Observations

This market shift raises questions about Tether’s future strategies in maintaining dominance amidst increasing competition. Market observers note this decline mirrors previous stablecoin market disruptions, hinting at shifts from USDT to alternatives like USDC or emerging institutional stablecoins.

Paolo Ardoino, CEO, Tether Holdings Ltd., – ‘We continue to focus on transparency and will adapt to the evolving competitive landscape as the industry matures.’

Potential outcomes include increased regulatory scrutiny and altered competitive dynamics among stablecoins. On-chain data suggests a trend towards diversification as holders seek alternatives, particularly with major financial players entering the stablecoin market. Technological adaptations may be necessary for Tether to sustain its market position.