The combined market share of Tether (USDT) and Circle (USDC) has fallen to 84%, according to data from analytics firm Token Terminal. Both stablecoins maintain record market capitalizations, but their relative dominance has diminished due to the entry of competitors and the rapid expansion of the overall market.
Two years ago, the duopoly was almost absolute. In February 2024, the combined participation rate of both issuers reached an all-time high of 95%.. Since then, concentration has steadily declined as the field has matured and new alternatives have emerged.
Despite the decline in share, the absolute value of both issuers has grown significantly. Approximate tethering and 100% And circle 200%.
Similarly, the market is showing a clear recovery in absolute terms. By January 2026, USDT nears $200 billion at all-time high. Meanwhile, USDC will stabilize at around $75 billion after a dip in 2023 and a sustained recovery thereafter.
However, the total “pie” of stablecoins on the market is increased at a faster rate. As seen in the graph below, this fact has significantly expanded the “Other” category in the capitalization and usage metrics.
Data shows that the size of this segment registering new stablecoin participation is the largest in recent years.
The end of absolute duopoly?
Factors explaining the loss of USDT and USDC dominance include: Launch and growth of the proposal PayPal’s PYUSD, Rippley’s RLUSD, Labs on Ethereum’s USDe, etc. Add to this the emergence of algorithmic and decentralized stablecoins that capture both institutional and retail demand.
However, while the two major stablecoins still maintain significant market share, the remaining alternative coins also They control only 16%. Therefore, the two giants are they keep getting stronger In terms of size. However, ecosystems are no longer solely dependent on them, thereby weakening the absolute duopoly.
All this occurs in a scenario where interest in “cakes” is increasing. User adoption is at record levels. 233.9 million people around the world use stablecoinsa 50% increase in just over a year, as reported by CriptoNoticias. A clear sign that stablecoins are becoming real infrastructure for the masses.
Such actions mark a turning point. Stablecoins have gone from a promise to an essential part of the digital economyacts as a major bridge between traditional finance and digital assets such as Bitcoin (BTC).
The combination of diversification, significant user growth, and reduced dependence on two historical leaders points to a future of greater competitiveness and less centralization in storing value and transferring capital in the global ecosystem.
