USDC and USDT Stablecoins Command 90% of Market Share: A Deep Dive

As the cryptocurrency market continues to evolve, a recent report reveals that USD Coin (USDC) and Tether (USDT) dominate the stablecoin sector, collectively holding nearly 90% of the market share. This significant concentration highlights the growing influence of these two stablecoins in the digital currency landscape.

Key Takeaways

• USDT holds a market cap of $146 billion, representing 64% of the stablecoin market.
• USDC’s market cap has doubled to $56 billion, capturing 24.5% of the market.
• The combined market share of USDC and USDT is approximately 88.5%.
• Active addresses for USDT and USDC have seen substantial growth over the past year.
• The total stablecoin supply has increased by 63%, reaching $225 billion.

Overview of Stablecoins

Stablecoins are a unique category of cryptocurrency designed to maintain a stable value by pegging them to stable assets, such as fiat currencies or commodities. This stability allows them to offer the benefits of cryptocurrencies—like fast transactions and decentralization—while mitigating the volatility typically associated with the crypto market.

Market Performance of USDT and USDC

According to the report from leading on-chain analytics platforms Dune and Artemis, the performance of USDT and USDC from February 2024 to February 2025 has been remarkable:

• USDT (Tether)
• USDC (USD Coin)

During this period, USDC’s market cap saw a significant increase, doubling from $28.5 billion to $56 billion. This growth can be attributed to enhanced regulatory clarity and compliance, particularly after Circle, the issuer of USDC, received a license under the EU’s Markets in Crypto Assets (MiCA) framework.

Yearly Growth Trends

The report also highlights the yearly growth trends for both stablecoins:

• USDT
• USDC

The total supply of stablecoins has surged by 63%, rising from $138 billion to $225 billion, indicating a robust institutional adoption of these digital assets.

Conclusion

The dominance of USDC and USDT in the stablecoin market underscores their critical role in the broader cryptocurrency ecosystem. As regulatory frameworks become clearer and institutional interest grows, these stablecoins are likely to continue shaping the future of digital finance. Their combined market share of nearly 90% not only reflects their popularity but also highlights the potential for further growth in the stablecoin sector as the market matures.