The stablecoin market dynamics on BitPay, a leading cryptocurrency payment platform, have shifted significantly in 2025. Tether's USDt (USDT) is rapidly closing the gap with Circle's USDC, threatening its long-held dominance in transaction volume and value.
Market Share Reversal: USDT Gains Ground
In 2024, USDC accounted for nearly double the transaction count of USDT on BitPay. However, 2025 has witnessed a dramatic trend reversal favoring Tether:
- January 2024: USDC dominated with 85% transaction share vs. USDT's 13%
- May 2025: USDC fell to 56% while USDT rose to 43%
This shift occurred despite Circle's regulatory advantages under MiCA (EU's Markets in Crypto-Assets Regulation) and its successful June 2025 public listing.
👉 Discover how stablecoins are transforming digital payments
USDT Leads in Payment Value
Beyond transaction frequency, Tether's USDT has achieved supremacy in total payment value:
- Since March 2025, USDT processes over 70% of stablecoin payment value on BitPay
The growth stems from:
- Increased overall stablecoin adoption
- Merchants/users gradually preferring USDT over USDC
Bill Zielke, BitPay's CRO, notes: "While USDC remains the most transacted stablecoin, USDT's growth in both volume and value marks a significant market evolution."
Regulatory Divergence: Circle vs. Tether
The competitors' trajectories highlight key industry contrasts:
| Factor | Circle (USDC) | Tether (USDT) |
|---|---|---|
| MiCA Compliance | Fully compliant since July 2024 | Publicly rejects MiCA framework |
| IPO Status | Publicly traded since June 2025 | No plans for public offering |
| Market Growth | 88% annual市值 growth ($330B→$617B) | 40% annual growth ($1125B→$1583B) |
👉 Explore cryptocurrency payment solutions for businesses
FAQ: Stablecoin Payments on BitPay
Q: Why are merchants switching to USDT?
A: BitPay reports growing preference due to USDT's liquidity advantages and expanding ecosystem support.
Q: Does USDC still have advantages over USDT?
A: Yes - USDC maintains higher transaction counts and benefits from stronger regulatory clarity in regulated markets.
Q: How might MiCA affect this competition?
A: Circle's compliance could strengthen institutional adoption, while Tether's resistance may limit its EU presence but preserve decentralization appeal.
Q: Which stablecoin offers better stability?
A: Both maintain 1:1 USD pegs, though their reserve compositions differ (USDC emphasizes transparency through monthly attestations).
Future Outlook
The stablecoin rivalry intensifies as:
- USDT leverages its first-mover network effects
- USDC capitalizes on regulatory credentials
- Emerging options like PayPal USD (PYUSD) enter the arena
Industry analysts suggest payment processors may increasingly support multiple stablecoins to accommodate diverse user preferences in this evolving landscape.