Tether and Circle's Dominance Is Being Put to the Test
In a significant development for the cryptocurrency market, Tether and Circle's grip on the global stablecoin market is facing its most formidable challenge yet. According to data from October 2025, these two entities control over 80% of global stablecoin value by market capitalization.
James Murrell, a crypto product and strategy professional, argues that this dominance is being put to the test. "The market has been waiting for a challenger to emerge, and it seems like that moment may have finally arrived," he said in an interview.
As of October 2025, USDT (Tether's stablecoin) and USDC (Circle's stablecoin) hold significant market share, with USDT dominating at $110,507.30 and USDC at $3,933.49. However, other crypto-native challengers have been gaining traction in recent months.
One such challenger is TerraUSD (UST), which has seen a surge in adoption and usage. "TerraUSD's success can be attributed to its innovative approach to stablecoins," said Do Kwon, founder of Terraform Labs. "We've managed to create a more decentralized and community-driven stablecoin that's gaining traction among users."
The rise of UST and other challengers has put pressure on Tether and Circle to adapt and innovate. Murrell notes that this is a positive development for the market as a whole. "Competition in the stablecoin space will lead to better products and services, ultimately benefiting consumers," he said.
Background context shows that Tether and Circle have been dominant players in the stablecoin market since its inception. However, with the emergence of new challengers, their grip on the market is being tested.
Additional perspectives from industry experts suggest that this development may have significant implications for society as a whole. "The rise of decentralized finance (DeFi) and stablecoins has the potential to democratize access to financial services," said Alex Mashinsky, founder of Celsius Network. "However, it also raises concerns about regulatory oversight and market volatility."
As of now, Tether and Circle continue to hold significant market share, but their dominance is being put to the test by emerging challengers. The next few months will be crucial in determining whether these new entrants can sustain their momentum and challenge the status quo.
Current Status:
USDT: $110,507.30
USDC: $3,933.49
TerraUSD (UST): $192.47
Next Developments:
The stablecoin market is expected to continue its growth trajectory in the coming months.
Tether and Circle are likely to face increased competition from emerging challengers.
Regulatory bodies may take a closer look at the stablecoin market, potentially leading to changes in the regulatory landscape.
This article was written by James Murrell, edited by Cheyenne Ligon.
*Reporting by Coindesk.*
