Tether’s USDT Up $5B as Rivals Lose $4.2B

Tether’s USDT supply increased by more than $5 billion over the past month to about $189.7 billion, according to market data. The gross inflows into USDT exceeded $5 billion during the period.

Net growth for USDT over the month was roughly $900 million, or about 0.3% of its total supply, indicating much of the increase reflected a rotation from competing stablecoins rather than new capital entering the sector.

Circle’s USDC, Ethena’s USDe and PayPal’s PYUSD shed a combined $4.2 billion over the same month. Ethena’s USDe showed the largest decline, falling about 28% in the past month and roughly 34% year-to-date since October 2025. PYUSD and USDC also contracted, though by smaller amounts.

USDT now represents close to 60% of the stablecoin market. When combined with USDC, the two incumbents account for roughly 93% of total stablecoin capitalization. The broader stablecoin market crossed about $320 billion last month; recent flows into USDT have reversed a small dip in its market share recorded at that time.

Market participants pointed to two main factors behind the reallocations. First, pending U.S. stablecoin legislation, primarily the GENIUS Act being considered by the Senate, has raised compliance questions for newer algorithmic and synthetic dollar products and has encouraged institutional users to move to longer-established issuers. Second, risk-off sentiment in crypto markets has pushed capital toward the most liquid stablecoin, which remains USDT by a wide margin.

Decentralized finance protocols that used USDe and PYUSD as collateral or liquidity reported smaller available supplies of those tokens during the month.