Despite rising competitors from rising issuers, the stablecoin market stays largely dominated by just a few key gamers. According to knowledge from Web3 analysis agency Nansen, Tether’s USDt continues to steer amongst US dollar-pegged stablecoins, at the same time as competitors intensifies.
As of April 25, Tether (USDT) has a roughly 66% market share amongst stablecoins, in comparison with round 28% for USDC (USDC), Nansen stated within the April 25 report. Ethena’s USDe stablecoin ranks a distant third, touting a market share of simply over 2%.
Nansen expects Tether’s result in endure at the same time as rivals resembling USDC clock sooner development charges.
“With nearly 3x as many users as Uniswap and 50+% more transactions than the next app, Tether is by and far the largest use case of onchain activity,” Nansen stated.
“Despite the potential dispersion in stables, we inevitably believe this is a ‘winner-takes-most’ market dynamic,” the Web3 researcher added.
Tether can be the most profitable stablecoin issuer, clocking almost $14 billion in 2024 earnings. The firm earns income by accepting US {dollars} to mint USDT and subsequently investing these {dollars} into extremely liquid, yield-bearing devices resembling US Treasury payments.
“Given the growth of USDT and USDC, the users are clearly expressing that they do not necessarily care about the yield as they are forgoing it to Tether and Circle -they simply want access to the most liquid and ‘stable’/ least-likely-to-depeg stablecoin out there,” Nansen stated.
Competitive panorama
Adoption of USDC has accelerated since November, when US President Donald Trump’s election victory ushered in a extra favorable US regulatory surroundings for crypto, Nansen stated.
Circle’s US-regulated stablecoin has been “particularly attractive to institutions requiring regulatory clarity,” the report stated.
But USDC now faces “intensifying competition as major traditional financial institutions (i.e., Fidelity, PayPal, and banks) enter the market,” Nansen stated, including that stablecoins, together with PayPal’s PYUSD and Ripple USD, are “rapidly gaining traction.”
On April 25, cost processor Stripe tipped plans to create a new stablecoin product of its personal after shopping for stablecoin platform Bridge final yr.
Despite its smaller market share, Ethena’s yield-bearing USDe stablecoin stays “competitive on most fronts moving forward,” partly due to integrations throughout centralized exchanges (CEXs) and decentralized finance (DeFi) protocols, the report stated.
Since launching in 2024, Ethena’s stablecoin has generated a median annualized yield of roughly 19%, in keeping with Ethena’s web site.
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