Tether Nears 50% Of Stablecoin Market, Highest in 14 Months

As the SEC looks set to clamp down on dollar-pegged tokens, the oldest stablecoin, Tether, is looking as dominant as ever

article-image

Source: Shutterstock / Wit Olszewski, modified by Blockworks

share

Tether (USDT) is once again coalescing as crypto’s pegged token of choice, with its stablecoin market share nearing 50% for the first time since December 2021.

The top stablecoin issuer has deployed an additional $2.4 billion USDT this year, now with $68.4 billion circulating supply, representing about 3% growth.

Circle’s offering, USDC, has meanwhile shed more than $3.3 billion in supply year to date. There’s now $41.2 billion USDC floating around the crypto ecosystem, down 7.5%.

Binance’s branded stablecoin, BUSD, stewarded by New York outfit Paxos, comes in third with $16.1 billion. 

BUSD has given up around $590 million supply since the start of the year, a 3.5% reduction. All eyes will be on that figure potentially falling following word of the SEC’s intent to sue. The regulator has reportedly claimed that BUSD is an unregistered security in a Wells notice.

The total stablecoin market capitalization currently stands at around $138.5 billion, per The TIE and CoinGecko data compiled by Blockworks, and:

  • Tether makes up 49.39%,
  • USDC boasts 29.76%,
  • BUSD is 11.63%.
Circle’s USDC is trending downward while USDT is on the up

Tether, Circle and Paxos, alongside several other stablecoin firms, allow token holders to exchange stablecoins for US dollars. Their supplies increase as market participants acquire the tokens directly from their respective issuers.

Conversely, stablecoin supplies shrink when their issuers burn tokens as they’re redeemed, although tokens are often reissued to other customers without burning.

Fourth-place DAI, the decentralized stablecoin maintained by MakerDAO, is much smaller than the top three with around $5.19 billion. DAI has lost $563.4 million from its market cap in 2023, equal to 10% of its supply, making it the biggest loser of the top-tier stablecoins.

FRAX, DAI’s direct competitor with an algorithmic element, has remained steady over the past three months, persisting in fifth place. 

TrustToken’s trueUSD (TUSD) is in sixth but stands out for growth, having added $190.4 million this year; 25% more supply.

TUSD is advertised as fully backed by US dollars, but its attestations include references to cash equivalents and other short-term liquid investments. They’re similar to Tether’s and Circle’s with less granularity.

Overall, the stablecoin market has shrunk by 1.5% this year, losing a little more than $2.1 billion. 

Total stablecoin dominance hit a record high just below 20% as FTX collapsed last November, but has since retreated to 14.38% as crypto markets have recovered.

Ether dominance is hovering around 20% while stablecoin dominance has pulled back

Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

The state’s decision opens staking access to New Yorkers, signaling a regulatory shift toward broader crypto participation

by Blockworks /
article-image

The startup says it aims to rival Stripe and Worldpay by using stablecoins to speed merchant settlements from days to seconds

by Blockworks /
article-image

“S&P 500” for crypto comes as segment gains “established role in global markets,” S&P exec says

article-image

The S&P Digital Markets 50 Index combines 15 cryptocurrencies with 35 crypto-linked companies, offering investors hybrid exposure

by Blockworks /
article-image

Gnosis is betting that openness — not ownership — will define the future of onchain money

article-image

Crypto’s quest to imbue shareholder protections for tokens