Tether consolidates dominance with 65% stablecoin supply share

How did Tether reach 65% market share?

According to data from Token Terminal, Tether’s USDT supply has nearly doubled over the past two years. It has increased from $65 billion in September 2024 to $118.6 billion in July 2025, continuing to grow to $160.8 billion.

USDT’s widespread adoption across multiple blockchains such as Ethereum, Tron, and Solana, with Tron having the highest circulating supply of over $80 billion, has contributed to this increase.

Tether’s competitor Circle USDC, which fell from $50 billion to $35 billion over the same period due to incidents such as the Silicon Valley Bank collapse in 2023, has also helped Tether make gains. According to recent reports, this has helped Tether capture nearly 65% ​​of the total stablecoin supply, with the company’s total market capitalization around $250 billion.

Chart from Token Terminal shows the outstanding supply growth of stablecoin issuers, including Tether (USDT) and others, over the past 365 days, as of July 5, 2025.

USDT stablecoin supply reached $159.5 billion, accounting for 66.5% of the total supply, with a total industry value of $239.9 billion. Reflecting the high demand for USDT as a liquidity tool in the cryptocurrency market, the USDT chart line has steadily increased from around $140 billion in July 2024 to current levels.

On the other hand, Tether's competitors, Circle ($60.8 billion) and Sky ($8.1 billion), account for only a small portion of the stablecoin market. This underscores Tether's undisputed dominance. The stablecoin issuer rankings provide more insight into the market.

Tether has a significant market share gap with $159.5 billion, far ahead of Circle in second place with $60.8 billion. Other issuers, such as First Digital Labs ($10.1 billion), PayPal ($863.3 million), and Ripple ($419.3 million), all have small supplies.

Meanwhile, new stablecoins, such as Global Dollar Network ($332.6 million) and TrueUSD ($327.8 million), show competitive entry, but are still not enough to Tether's strong adaptability to regulatory issues and market changes is demonstrated by USDT's growth, especially as the supply of Tether's competitors, such as USDC, declines from a peak of $50 billion in 2023.

What challenges and risks could emerge?Despite its dominance, Tether faces several challenges. First, past regulatory investigations by the CFTC and NYAG into reserve transparency could return, especially as its market share rises to 65%. Second, competition from more regulated stablecoins like USDC, or decentralized projects like DAI, could erode market share if Tether fails to improve its financial reporting. Finally, if U.S. regulations require companies like Tether to move operations to federal banks, compliance costs could eat into profits, which are currently estimated to be $1.3 billion in Q2 2024.

Evaluation and Conclusion

Tether’s 65% share of the stablecoin supply, according to data from Token Terminal, is a testament to USDT’s undeniable dominance in the cryptocurrency industry, thanks to its high liquidity and global adoption. However, this success comes with significant challenges, from regulatory pressure to centralization risk, requiring Tether to adapt quickly. In a changing market environment, this event not only solidifies Tether’s role but also raises questions about the sustainability of the current model, opening up opportunities and challenges for both investors and the industry in the near future.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.

Compiled and analyzed by HCCVenture

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