#HighlightPosts Despite the competition, Tether dominates the stablecoin market with a market share of 66 percent.

Despite the growing competition from new issuers, the stablecoin market is still predominantly controlled by a few major players. According to data from research firm Web3 Nansen, USDt from Tether
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the token continues to lead among stablecoins pegged to the US dollar, even as competition increases.
According to the Nansen report from April 25, Tether's market share among stablecoins is about 66 percent, compared to approximately 28 percent for USDC.
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. The USDe stablecoin from Ethena holds a distant third place with a market share of about 2 percent.
Nansen predicts that Tether will continue to lead, even as competitors like USDC grow faster.
"Tether is undoubtedly the largest user base of on-chain activity, with almost as many users as Uniswap, and over 50% more transactions than the latter application," said Nansen.
"Despite the potential for a possible breakthrough in stablecoins, we believe this is a market with an inevitable 'winner takes all' dynamic," added the Web3 researcher.
Tether is also the most profitable issuer of stablecoins, generating nearly $14 billion in profit in 2024. The company generates revenue by accepting US dollars for the issuance of USDT and investing those dollars in highly liquid, profitable instruments such as US Treasury bonds.
"Looking at the growth of USDT and USDC, it is clear that users are sacrificing profitability and leaving it to Tether and Circle; they just want access to the most liquid and 'stable'/least likely to depreciate stablecoin," said Nansen.
According to Nansen, the adoption of USDC accelerated after the victory of US President Donald Trump in November, creating a more favorable regulatory environment for crypto in the US.
The report states that the Circle stablecoin, regulated in the USA, is "particularly attractive to institutions with regulatory clarity requirements."
However, Nansen noted that USDC is now facing "increasing competition from large traditional financial institutions such as Fidelity, PayPal, and banks," adding that stablecoins like PYUSD from PayPal and Ripple USD are "gaining traction quickly."
On April 25, the payment processor Stripe announced plans to launch its own stablecoin product after acquiring the stablecoin Bridge platform last year.
Despite having a smaller market share, the USDe stablecoin from Ethena "remains competitive in most directions in the future," according to the report, thanks to its integrations with centralized exchanges (CEX) and decentralized finance protocols (DeFi).
Since its launch in 2024, the Ethena stablecoin has generated an average annual yield of approximately 19 percent, according to information on the Ethena website.