Tether Loses Its Shine As Market Dominance Slides To 60%

Based on recent figures, USDT dominance dropped to nearly 60% on August 29. It is the weakest hold Tether has had since March 2023.

Nevertheless, USDT’s market cap is $168 billion and Circle’s USDC is $70.37 billion — both all-time highs. So the physical magnitude of the coins is greater, but the share of the market under each’s control is moving.
Rising Competitors Make Inroads

According to figures from DefiLlama, the first half of 2024 saw USDT dominance at approximately 70%. USDC then had around 18% of the market.

That figure has risen and is now at approximately 30%. DAI, which used to capture about 3.5%, has dropped to 1.85%. These adjustments indicate money is transferring between stablecoins and not exiting the space.

One New Token Stands Out

Ethena’s USDe stands out. Introduced in December 2024, USDe already has 4.32% dominance with a market capitalization of $12.25 billion.

That’s a quick ascent for a token that had just come out late last year. Trump-associated World Liberty Financial’s USD1 holds 0.88% market share.

Data have revealed those figures together with the bigger market-cap numbers for USDT and USDC, which makes it clear: competition is increasing while total numbers rise.