Tether remains the leading stablecoin in the market, holding a market share of approximately 66%, compared to 28% for USDC, as of April 25, 2025, despite rising competition from new issuers. According to a report by Web3 research firm Nansen, Tether's USDt continues to dominate even as its rivals grow. Notably, USDC has experienced a notable increase in adoption since November 2024, driven by improved regulatory clarity for crypto after recent political changes. USDC's appeal particularly lies in its regulatory compliance, making it attractive to institutional players. However, it now faces intensified competition with major institutions like Fidelity and PayPal entering the stablecoin space. Meanwhile, Ethena’s USDe stablecoin, although holding a smaller market share of just over 2%, is becoming competitive due to attractive yield options and integrations with various trading platforms. Nansen predicts Tether's dominance will persist given its extensive user base and transaction volume, suggesting a 'winner-takes-most' dynamic in the stablecoin market.

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