Tether’s competition is growing, and it’s not just Circle 

Tether’s USDT stablecoin has once again asserted its dominance in the crypto ecosystem, with circulating supply skyrocketing past $156 billion, a record high, as reported by Token Terminal on X.

While USDT’s supply is becoming increasingly distributed across multiple blockchain networks, EVM giants still claim the lion’s share, with Tron leading with over $80 billion. USDT supply on the Justin Sun-linked network has grown by approximately $20 billion year-to-date.

Ethereum holds the next-largest chunk with over $71.54 billion. Tron and Ethereum account for more than 90% of total USDT issuance.

Distribution of Tether’s USDT supply by network. Source: Token Terminal

Other fast-growing networks include Solana, Aptos, and TON, tapping into USDT’s liquidity outside EVM chains.

The race for stablecoin supremacy

USDT’s expansive reach mirrors its longstanding appeal as a reliable on-ramp for traders and institutions. But in the background, an intense rivalry is unfolding with Circle’s USDC, the second-largest stablecoin by market share.

As USDT strengthens its lead, Circle’s USDC recently exceeded $61 billion in supply, holding approximately 24% of the stablecoin market.

Circle’s rise isn’t limited to blockchain data. It is also making waves on Wall Street too. Since its June 5 IPO, Circle’s stock (CRCL) has surged over 700%, placing its market cap around $68 billion, showing high investor confidence.

However, one of the major investors, Cathie Wood’s ARK Invest, has begun trimming positions, becoming one of the first big players jumping from the valuation euphoria to profit-taking.

Circle fills a Tether-shaped void as USDT exits the EU

In a move attributed to the European Union’s (EU) stringent Markets in Crypto‑Assets (MiCA) regulation, Tether discontinued EURT, its euro-backed stablecoin, in November 2024, halting new minting and withdrawing EU support for users. Tether publicly criticized MiCA’s heavy compliance and reserve mandates as overly “restrictive.”

Several exchanges across the European Economic Area have already delisted their USDT spot pairs to comply with MiCA, although custody and futures availability remain in many cases.

To maintain a foothold in the European market, Tether is investing in MiCA‑compliant alternatives, namely EURQ and USDQ, built via its Hadron platform in partnership with Quantoz.

Circle’s EURC has stepped up in the absence of Tether’s EURT. Source: Toke Terminal

Meanwhile, Circle is expanding its euro stablecoin, EURC. Supply has risen substantially in the past year from $78.4 million to $236.1 million, with roughly 80% of this circulation is on Ethereum and Solana.

This showdown between USDT and USDC also highlights the maturation of stablecoins in the global financial system. As of May 2025, Tether held over $120 billion in U.S. Treasury bills, which is enough to modestly suppress short-term yields.

Circle, on the other hand, is actively positioning itself for mainstream adoption via compliance, solid capitalization, and high-profile earnings backed by its yield on reserves.

However, what appears to be a lopsided two-horse race may soon get other serious contenders. Clarity from regulatory milestones such as the GENIUS and STABLE Act, as well as other legislation at different stages in the House and Senate, has piqued the interest of large American banks and corporations to explore issuing their own stablecoins to potentially challenge the Tether-Circle hegemony.

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