The stablecoin landscape is shifting rapidly, and Tether’s USDT is making powerful inroads into Circle’s long-held dominance on BitPay — one of the most widely used cryptocurrency payment platforms globally. While USDC once reigned supreme in transaction volume and user adoption, 2025 has marked a turning point, with USDT not only closing the gap but surpassing its rival in key financial metrics.
This transformation highlights changing market dynamics, evolving user preferences, and divergent regulatory strategies between the two leading stablecoin issuers: Tether and Circle.
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The Rise of USDT on BitPay
In 2024, USDC was the dominant stablecoin on BitPay, accounting for nearly twice as many transactions as USDT. According to data shared exclusively with industry analysts, USDC held an impressive 85% share of stablecoin transactions on the platform in January 2024, compared to just 13% for USDT.
However, by May 2025, that balance had dramatically shifted. USDC’s transaction share dropped to 56%, while USDT surged to 43% — a clear indication of growing merchant and consumer confidence in Tether’s offering.
More significantly, USDT has taken the lead in total payment value processed. Since March 2025, over 70% of the total stablecoin payment volume on BitPay has been conducted using USDT, making it the most valuable stablecoin on the network by transaction value.
“While USDC was the most frequently used token in 2024, USDT has now captured the majority of payment value,” a BitPay spokesperson confirmed. “This shift reflects both rising overall stablecoin usage and a clear preference among users and merchants for USDT.”
Why Users Are Switching to USDT
Several factors are driving this migration from USDC to USDT on BitPay:
- Liquidity and Availability: USDT remains the most liquid stablecoin across global exchanges, making it easier for users to acquire and spend.
- Merchant Adoption: An increasing number of online retailers and service providers integrated on BitPay now list prices directly in USDT, reducing friction for buyers.
- Cross-Border Utility: USDT’s widespread acceptance outside the U.S., especially in emerging markets, enhances its appeal for international transactions.
- Network Effects: As more users adopt USDT, network effects amplify its utility, creating a self-reinforcing cycle of adoption.
Bill Zielke, Chief Revenue Officer at BitPay, acknowledged the trend: “Although USDC still leads in transaction count, USDT now dominates in terms of total dollar value transferred. We’re seeing strong momentum in user demand for Tether-based payments.”
Zielke also noted that BitPay continues to expand its presence in the U.S. market while maintaining a robust user base across Europe.
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Regulatory Divergence: MiCA and IPO Strategies
One of the most striking aspects of this competitive shift is that it’s occurring despite Circle’s stronger regulatory positioning.
In July 2024, Circle became the first global stablecoin issuer approved under the European Union’s Markets in Crypto-Assets (MiCA) regulation, giving USDC a significant compliance edge in Europe. Tether, by contrast, has been vocal in its criticism of MiCA’s requirements and has stated it will not fully comply with the framework in its current form.
Furthermore, Circle went public in June 2024 through a $1.05 billion direct listing — becoming a publicly traded company and enhancing its transparency and institutional credibility. Tether, led by CEO Paolo Ardoino, has repeatedly affirmed it has no plans for an IPO, emphasizing its commitment to operational independence and privacy.
Yet, despite these advantages, Circle has not been able to maintain its lead on BitPay. This suggests that while regulatory compliance and public market status matter, they may not be the primary drivers of consumer choice in real-world payment scenarios.
Market Capitalization Growth: A Tale of Two Stablecoins
Even as USDT gains ground in payments, USDC continues to show impressive growth in market capitalization — highlighting that usage and valuation don’t always move in lockstep.
According to CoinGecko data:
- USDC’s market cap rose 88% over the past year, jumping from approximately $33 billion to $61.7 billion.
- Over the same period, USDT grew by 40%, increasing from $112.5 billion to $158.3 billion.
- Year-to-date in 2025, USDC is up 41%, while USDT has grown by 15.5%.
This indicates that institutional inflows and regulated finance (DeFi, CeFi lending, treasury management) still favor USDC, whereas consumer-driven payment ecosystems increasingly prefer USDT.
What This Means for the Future of Stablecoin Competition
The battle between USDT and USDC is no longer just about reserves or regulation — it's about real-world utility. BitPay’s data reveals a crucial insight: even with superior regulatory credentials and public market backing, a stablecoin can lose ground if it fails to meet user needs in everyday transactions.
Tether’s success underscores the importance of liquidity, global accessibility, and merchant support — elements that resonate strongly with end users.
As adoption grows beyond speculative trading into daily commerce, the definition of “stablecoin dominance” may shift from balance sheet strength to spendability.
👉 Find out which stablecoin experts predict will power the next wave of digital commerce.
Frequently Asked Questions (FAQ)
Why is USDT gaining popularity over USDC on BitPay?
USDT is gaining traction due to its higher liquidity, broader global acceptance, and strong integration with merchants using BitPay. Even though USDC has regulatory advantages, users often prioritize ease of access and spending power — areas where USDT excels.
Does USDC still have any advantages over USDT?
Yes. USDC holds a stronger regulatory position, especially under MiCA in Europe, and is preferred in institutional finance, lending protocols, and compliant financial systems. It also offers greater transparency through regular audits and reporting.
Is Tether planning to go public like Circle?
No. Tether CEO Paolo Ardoino has clearly stated that the company does not intend to pursue an IPO. Tether values operational autonomy and believes it can scale without public market pressures.
Can a stablecoin be both compliant and widely used?
Ideally, yes — but trade-offs exist. Circle’s path emphasizes compliance and institutional trust, while Tether focuses on utility and global reach. The future may belong to issuers who can balance both effectively.
Are there risks associated with using USDT instead of USDC?
Some investors perceive higher counterparty risk with Tether due to past transparency concerns, though Tether has improved its reporting significantly since 2023. USDC is generally seen as lower risk in regulated environments. However, for peer-to-peer payments and cross-border transfers, many users accept this trade-off for greater flexibility.
Will other stablecoins like PYUSD or DAI challenge USDT and USDC?
Currently, alternatives like PayPal USD (PYUSD) and DAI remain minor players on BitPay. While they offer unique benefits — such as PYUSD’s fiat backing or DAI’s decentralization — neither matches the scale or liquidity of USDT or USDC. For now, the duopoly remains intact.
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