{"id":24239,"date":"2025-04-28T21:47:00","date_gmt":"2025-04-28T21:47:00","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=24239"},"modified":"2025-04-28T21:47:00","modified_gmt":"2025-04-28T21:47:00","slug":"tether-still-dominates-stablecoins-despite-competition-nansen","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=24239","title":{"rendered":"Tether still dominates stablecoins despite competition \u2014 Nansen"},"content":{"rendered":"
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\"Tether<\/p>\n

Despite growing competition from emerging issuers, the stablecoin market remains largely dominated by a few key players. According to data from Web3 research firm Nansen, Tether\u2019s USDt continues to lead among US dollar-pegged stablecoins, even as competition intensifies.<\/p>\n

As of April 25, Tether (USDT<\/a>) has a roughly 66% market share among stablecoins, compared to around 28% for USDC (USDC<\/a>), Nansen said in the April 25 report.\u00a0Ethena\u2019s USDe stablecoin ranks a distant third, touting a market share of just over 2%. <\/p>\n

Nansen expects Tether\u2019s lead to endure even as rivals such as USDC clock faster growth rates. <\/p>\n

\u201cWith nearly 3x as many users as Uniswap and 50+% more transactions than the next app, Tether is by and far the largest use case of onchain activity,\u201d Nansen said.<\/p>\n

\u201cDespite the potential dispersion in stables, we inevitably believe this is a \u2018winner-takes-most\u2019 market dynamic,\u201d the Web3 researcher added.\u00a0<\/p>\n

\"Cryptocurrencies,
Tether has 66% of stablecoin market share. Source: Nansen<\/em><\/figcaption><\/figure>\n

Tether is also the most profitable stablecoin issuer<\/a>, clocking nearly $14 billion in 2024 profits. The company earns revenue by accepting US dollars to mint USDT and subsequently investing those dollars into highly liquid, yield-bearing instruments such as US Treasury bills.\u00a0<\/p>\n

\u201cGiven the growth of USDT and USDC, the users are clearly expressing that they do not necessarily care about the yield as they are forgoing it to Tether and Circle -they simply want access to the most liquid and \u2018stable\u2019\/ least-likely-to-depeg stablecoin out there,\u201d Nansen said.<\/p>\n

\"Cryptocurrencies,
USDC has seen faster growth than USDT since November. Source: Nansen<\/em><\/figcaption><\/figure>\n

Competitive landscape<\/h2>\n

Adoption of USDC has accelerated since November, when US President Donald Trump\u2019s election victory ushered in a more favorable US regulatory environment for crypto, Nansen said. <\/p>\n

Circle\u2019s US-regulated stablecoin has been \u201cparticularly attractive to institutions requiring regulatory clarity,\u201d the report said. <\/p>\n

But USDC now faces \u201cintensifying competition as major traditional financial institutions (i.e., Fidelity, PayPal, and banks) enter the market,\u201d Nansen said, adding that stablecoins, including PayPal\u2019s PYUSD and Ripple USD, are \u201crapidly gaining traction.\u201d\u00a0<\/p>\n

On April 25, payment processor Stripe tipped plans to create a new stablecoin product<\/a> of its own after buying stablecoin platform Bridge last year. <\/p>\n

Despite its smaller market share, Ethena’s yield-bearing USDe stablecoin remains \u201ccompetitive on most fronts moving forward,\u201d partly because of integrations across centralized exchanges (CEXs) and decentralized finance (DeFi) protocols, the report said.<\/p>\n

Since launching in 2024, Ethena\u2019s stablecoin has generated an average annualized yield of approximately 19%, according to Ethena\u2019s website. <\/p>\n

Magazine:\u00a0<\/strong><\/em>Bitcoin payments are being undermined by centralized stablecoins<\/strong><\/em><\/a><\/p>\n