Tether's USDT is rapidly closing the gap with USDC in the stablecoin payments race, particularly on BitPay, a leading crypto payment platform.
Key Trends in Stablecoin Adoption
- USDC’s Dominance Fades: In January 2024, USDC accounted for 85% of stablecoin payments on BitPay. By May 2025, its share dropped to 56%.
- USDT’s Surge: Tether’s share soared to 43%, with 70% of total stablecoin transaction volume processed since March 2025.
- Volume vs. Transactions: While USDC still leads in transaction count, USDT dominates in total volume, signaling strong merchant preference.
Market and Regulatory Dynamics
- USDC’s Regulatory Edge: USDC benefits from MiCA compliance in Europe and a high-profile public listing in June 2025.
- Tether’s Defiant Strategy: USDT opted out of MiCA compliance and shelved IPO plans, yet continues gaining traction in payments.
- Market Capitalization: USDC’s market cap nearly doubled in a year, but USDT remains the largest stablecoin by overall valuation.
Industry Insights
BitPay’s Chief Revenue Officer observed:
"USDC retains its lead in transaction frequency, but USDT’s rapid adoption—especially in Europe—is reshaping payment preferences."
FAQs
1. Why is USDT gaining ground on BitPay?
USDT’s lower fees, faster settlements, and widespread merchant acceptance are driving its growth, particularly in Europe.
2. Does USDC’s regulatory compliance give it an advantage?
Yes, but USDT’s liquidity and established use cases in trading and remittances offset this in payment platforms.
3. Will USDT overtake USDC in transaction count?
If current trends continue, USDT could surpass USDC in both volume and transactions by late 2025.
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Conclusion
The stablecoin rivalry is intensifying, with USDT’s payment dominance challenging USDC’s regulatory stronghold. As BitPay data shows, user preferences are shifting—making this a space to watch closely.