Tether still dominates stablecoins despite competition — Nansen
The stablecoin market is primarily dominated by Tether (USDT), which holds a 66% market share, followed by USDC at 28% and Ethena’s USDe at over 2%. Tether is the largest use case for on-chain activity, significantly outpacing competitors in user numbers and transactions. Tether is also the most profitable stablecoin issuer, with nearly $14 billion in profits for 2024, deriving revenue from minting USDT and investing in liquid assets like US Treasury bills. USDC has seen accelerated adoption due to favorable regulatory conditions but faces increasing competition from traditional financial institutions and new entrants like PayPal’s PYUSD and Stripe's planned stablecoin. Ethena's USDe, despite its smaller market share, remains competitive due to high yields and integrations with exchanges and DeFi protocols.
