In 2025, USDC has significantly lost market share to Tether's USDt on the BitPay payment platform. After commanding 85% of transactions on BitPay in January 2024, USDC's share fell to 56% by May 2025, while USDT increased its share to 43%. This shift occurred despite initial optimism for USDC in early June. Tether's USDt also led in payment volume, exceeding 70% of stablecoin volume processed by BitPay starting in March 2025. Bill Zielke from BitPay attributed this trend to a general increase in stablecoin transactions and preferences for USDT among merchants and customers. Tether's defiance of regulatory frameworks contrasts with Circle's compliance efforts in Europe. Despite USDC's challenges on BitPay, its market capitalization climbed from $33 billion to $61.7 billion in the past year, while USDT's market value rose from $112.5 billion to $158.3 billion. Overall, USDC has seen a 41% year-to-date increase in market cap, compared to USDT's 15.5%.

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