Stablecoins: Tether gains 5 billion dollars in one month

The stablecoin market enters a phase of brutal concentration. Tether absorbs almost all new flows, while its rivals take a hit. Between regulatory uncertainties and crypto market nervousness, investors now favor liquidity, size, and perceived security.

Tether takes back control of the stablecoin market

The observation is clear: Tether is strengthening its dominance at an impressive speed. Over the past month, the total supply of USDT increased by more than 5 billion dollars to reach about 189.7 billion dollars. Meanwhile, several major competitors experienced massive capital outflows.

Circle’s USDC, PayPal’s PYUSD, and especially Ethena’s USDe recorded a combined decline of 4.2 billion dollars. As a result, the net overall growth of the stablecoin market remains nearly at a standstill, with only a 0.3% increase. This means there are no real new funds entering the crypto ecosystem. Investors are simply moving their funds to Tether.

This dynamic reveals a profound shift in market behavior. For several months, institutional investors have favored the most liquid and robust assets. USDT remains by far the most used stablecoin in crypto trading, international exchanges, and liquidity reserves of platforms.

The fall of Ethena’s USDe perfectly illustrates this trend. The synthetic stablecoin has lost nearly 34% since October 2025. This decline shows the limits of algorithmic or hybrid models in a risk-averse environment.

Today, USDT and USDC together represent about 93% of the global stablecoin market. A concentration that recalls the dominance of traditional banking giants in classic finance.

Regulation, DeFi and monetary war, the reasons behind USDT’s domination

Tether’s rise is not explained solely by its size. The US regulatory context also plays a central role.

In the United States, discussions around the GENIUS Act and stablecoin regulation create growing pressure on projects considered less transparent or more experimental. Investors want to avoid regulatory grey areas. In this climate, Tether paradoxically benefits from its seniority and market depth.

The slowdown of some stablecoins could also weaken several decentralized finance protocols. Many still use USDe or PYUSD as collateral for crypto loans and yield strategies. A prolonged decline in their capitalization risks affecting borrowing rates and liquidity on DeFi.

Meanwhile, this American dominance increasingly worries Europe. The Qivalis project, now supported by 37 European banks, illustrates this desire to build a credible alternative to the hegemonic dollar stablecoin. Because today, nearly 98% of global stablecoins remain backed by the US dollar.

This battle now goes beyond the simple crypto framework. Stablecoins are becoming geopolitical instruments, international payment tools, and potentially strategic reserves for corporations and states.