Tether’s $181B Paradox: How USDT Keeps Growing as Its Market Share Collapses Under MiCA

Why It Matters

The result is growing competition and fragmentation in the stablecoin market, with implications for liquidity, cross-border payments and where issuers choose to domicile or certify reserves.

Summary

Tether’s USDT has seen its market share slide from about 70% in November 2024 to 59.9% by October 2025 even as its total supply hovers near $181 billion, while Circle’s USDC rose from 20.5% to 25.3% over the same period. The shift has accelerated alongside enforcement of Europe’s MiCA rules, though on-chain flows and issuer responses suggest the change is driven by regulatory access and institutional preference rather than depegging risk. The result is growing competition and fragmentation in the stablecoin market, with implications for liquidity, cross-border payments and where issuers choose to domicile or certify reserves.