The second-largest stablecoin by market capitalization, USDC, is continuously losing market share on the mainstream payment platform BitPay to its main competitor, Tether's USDt, in 2025.
According to data shared by BitPay and Cointelegraph, Circle's USDC (USDC) dominated stablecoin transactions on BitPay in 2024, but its trading share significantly declined in the face of Tether's USDt (USDT).
In January 2024, USDC held a trading share of 85% on BitPay, while USDT accounted for only 13%. By May 2025, USDC's share had dropped to 56%, while USDT rose to 43%.
This shift in market dynamics occurred even though Circle successfully went public in early June and had certain regulatory advantages under the EU's Markets in Crypto-Assets (MiCA) compared to Tether's USDT.
In addition to narrowing the gap in transaction volume with its main competitor, Tether's USDT stablecoin also achieved a lead in total payment volume.
"In 2024, USDC was the most commonly used token. However, since March 2025, USDT has gained a significant share in total transaction volume, accounting for over 70% of the stablecoin total processed by BitPay," the crypto payment company stated.
BitPay noted that the reasons users are shifting to USDT include "the overall increase in stablecoin transaction volume" and "the growing preference of existing merchants and customers for USDT over USDC."
BitPay's Chief Revenue Officer, Bill Zielke, stated that the platform has a "large user and merchant base" in Europe but remains focused on expanding in the U.S. market.
"In 2024, the number of transactions for USDC was nearly double that of USDT," Zielke added. Despite the decline in USDC's market share since 2025, its transaction volume remains the most popular stablecoin on BitPay.
Tether continues to lead in payment transaction volume and is expanding its advantage over USDC in transaction numbers on BitPay, reflecting the differences between Tether and Circle in regulatory pathways and providing important insights for the industry.
Although Circle became the first global stablecoin issuer to receive approval under the European MiCA regulatory framework in July 2024, Tether has publicly criticized certain regulatory provisions of MiCA multiple times and has made it clear that it will not comply with the framework in Europe.
In June 2024, Tether CEO Paolo Ardoino confirmed that despite Circle going public after raising $1.05 billion through a secondary offering on June 5, Tether has no intention of conducting an initial public offering (IPO).
Although USDC's performance on BitPay in 2025 has not matched that of USDT, its market capitalization has still seen significant growth over the past year.
According to CoinGecko, USDC's market capitalization surged by 88% over the past year, rising from approximately $33 billion to the current $61.7 billion. During the same period, USDT's market capitalization grew by 40%, from $112.5 billion to $158.3 billion.
Additionally, USDC's market capitalization has increased by 41% year-to-date, while USDT has only grown by 15.5% during the same period.
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Original: “Tether (USDT) Challenges Circle's Leading Position in BitPay Payment Sector in 2025”
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