Tether’s USDT fell from 70% market dominance in November 2024 to 59.9% by October 2025, the second sub-60% studying in a single 12 months, whereas Circle’s USDC climbed from 20.5% to 25.3% over the identical span.

The shift coincides with Europe’s Markets in Crypto-Belongings (MiCA) regulation enforcement, however the dynamics inform a extra advanced story than easy regulatory displacement.

The European Union’s MiCA framework rolled out in two phases. The primary stablecoin-specific provisions took impact June 30, 2024, whereas broader crypto-asset service supplier necessities started Dec. 30, 2024.

Supervisors instructed platforms to halt choices of non-compliant stablecoins instantly, although ESMA granted a sell-only wind-down window via the top of the primary quarter to forestall person disruption.

Main European exchanges responded by delisting or proscribing USDT pairs forward of the April deadline.

Tether acknowledged the regulatory headwinds by investing in StablR, a Malta-licensed digital cash establishment, on Dec. 17, 2024. The transfer mirrored an earlier funding in Quantoz, one other MiCA-aligned issuer backed by Tether’s Hadron platform.

Somewhat than modify USDT immediately, Tether positioned itself behind entities licensed beneath European oversight.

The denominator impact

Filippo Armani, information researcher at Dune, frames USDT’s dominance decline as primarily mathematical moderately than existential.

In a commentary shared with CryptoSlate, he defined:

“The pie expanded sooner by way of USDC and USDe whereas USDT nonetheless grew strongly in absolute phrases. Tether’s provide surged from $89.1 billion in November 2023 to $133.9 billion by November 2024 and $180.9 billion by October 2025.”

Armani added that USDC vaulted from $24.3 billion to $76.3 billion over the identical interval, whereas Ethena’s USDe emerged from near-zero to $12.2 billion in the identical interval.

Though he acknowledged that MiCA’s stablecoin guidelines pushed main venues to curb or delist USDT pairs by April 2025, nudging share towards compliant alternate options like USDC.

But, this motion is a regional dynamic, not proof of shrinking world USDT demand.

The info help that evaluation. USDT added almost $50 billion in provide between November 2024 and October 2025, whilst its proportion share contracted.

USDC’s proportion positive aspects replicate accelerated adoption in compliant jurisdictions moderately than wholesale migration from Tether’s product.

Nikolaos Kostopoulos, blockchain senior advisor at Netcompany SEE & EUI, additionally sees MiCA’s affect as geographically bounded.

“Whereas MiCA has undoubtedly constrained USDT’s footprint in Europe, its total affect on Tether’s world dominance stays restricted. USDT continues to thrive in offshore and rising markets past the EU perimeter, the place regulatory arbitrage nonetheless exists.”

Strategic countermoves

Tether’s investments in StablR and Quantoz deal with European market entry with out diluting USDT’s model or provide.

Each platforms function beneath Digital Cash Establishment licenses that fulfill MiCA necessities, permitting European venues to record their tokens with out regulatory publicity.

Armani expects this technique to spice up “Tether-ecosystem share within the EU, not essentially USDT’s personal dominance,” since separate tickers forestall direct attribution to Tether’s flagship product.

The corporate telegraphed broader ambitions via USAT, a deliberate US-regulated stablecoin designed for GENIUS Act compliance.

Armani views the home launch as a mechanism to “reclaim share stateside as soon as stay,” notably amongst institutional patrons prioritizing regulatory readability.

In the meantime, Tether Gold (XAUT) reached $1.6 billion in market capitalization, and the corporate’s Plasma Layer-1 integration permits zero-fee USDT transfers and yields exceeding 10% via companion neobanks.

Kostopoulos views Tether’s EU-focused subsidiaries as unlikely to reverse the dominance slide.

He added that exchanges and institutional gamers from the eurozone are already specializing in a brand new, totally regulated stablecoin based mostly on the euro, pushed by 9 European banks.

Nonetheless, Kostopoulos said:

“The extra structural drivers forward lie not inside MiCA itself, however in new entrants reminiscent of World Liberty Monetary’s stablecoin and the broader political and business pursuits shaping the subsequent technology of stablecoins.”

The aggressive panorama extends past regulatory compliance.

Conventional finance establishments put together stablecoin launches with built-in banking relationships and institutional belief.

Stripe unveiled a platform to fast-track the creation of stablecoins, Visa plans to assist banks concern their very own tokenized fiat currencies, and lots of others are becoming a member of the motion.

Tether’s USDT absolute progress, doubling provide in two years, demonstrates sturdy demand exterior regulated markets. It additionally illustrates how regional dynamics will not be sufficient to curb USDT’s progress.

The query turns into whether or not Tether’s investments in compliant subsidiaries and US-focused merchandise can compete for institutional flows in opposition to entities structured for regulatory environments from inception.