In 2024, USDC processed nearly twice as many transactions as Tether’s USDT on BitPay. But by 2025, the tide has turned—USDT is rapidly closing the gap and reshaping the stablecoin payment landscape.
Despite USDC’s early dominance on the popular crypto payment platform BitPay, Tether’s USDt (USDT) has surged in adoption, capturing an increasingly large share of both transaction volume and total payment value. This shift highlights a pivotal moment in the ongoing competition between two of the most widely used stablecoins in the world.
The Rise of USDT on BitPay
According to exclusive data shared by BitPay with industry analysts, USDC once held a commanding lead in stablecoin transactions. In January 2024, it accounted for 85% of all stablecoin payments on the platform, while USDT trailed at just 13%. However, by May 2025, that gap had narrowed dramatically: USDC dropped to 56%, while USDT climbed to 43%.
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This shift is not just about transaction counts—it's also about total value moved. Since March 2025, USDT has overtaken USDC in total payment volume, now accounting for over 70% of all stablecoin transaction value processed through BitPay.
“2024 was the year of USDC in terms of usage frequency. But starting in early 2025, we saw a clear pivot—USDT began dominating in both merchant preference and total transaction value,” a BitPay spokesperson noted.
The growing preference for USDT appears driven by a combination of factors: rising overall stablecoin adoption, increased merchant support, and stronger user trust in Tether’s liquidity and network reach.
Why Are Users Switching to USDT?
Several key dynamics explain why users and merchants are favoring USDT over its closest rival:
- Liquidity and Availability: USDT remains the most widely listed stablecoin across global exchanges, offering unmatched accessibility.
- Network Flexibility: Tether supports multiple blockchains (including Ethereum, Tron, Solana, and more), allowing faster and cheaper transfers depending on network conditions.
- Merchant Adoption: More online retailers and service providers now accept USDT directly, reducing conversion friction.
- User Familiarity: As the longest-running major stablecoin, USDT benefits from entrenched user habits and brand recognition.
Bill Zielke, Chief Revenue Officer at BitPay, acknowledged that while USDC still leads in number of transactions, the momentum clearly favors USDT—especially in high-value payments.
“Back in 2024, USDC had almost double the transaction count compared to USDT,” Zielke said. “But today, we’re seeing a clear shift in value concentration toward USDT, even as both coins grow.”
BitPay continues to expand its U.S. footprint while maintaining a strong presence in Europe. The platform supports multiple stablecoins, including PayPal USD (PYUSD), though neither PYUSD nor other alternatives have yet made significant inroads against the USDT-USDC duopoly.
Regulatory Divergence: Tether vs. Circle
One of the most intriguing aspects of this market shift is that it’s occurring despite Circle’s stronger regulatory positioning—especially under the European Union’s Markets in Crypto-Assets (MiCA) regulation.
In July 2024, Circle became the first global stablecoin issuer approved under MiCA, granting USDC a significant compliance advantage in Europe. Tether, by contrast, has been vocal in its criticism of certain MiCA requirements and has stated it does not intend to fully comply with the framework for its EURT or USDt offerings in the region.
Furthermore, Circle went public in June 2024 following a $1.05 billion capital raise, marking a major milestone in institutional legitimacy. Tether, however, remains privately held—and shows no signs of pursuing an IPO.
Paolo Ardoino, CEO of Tether, reaffirmed in mid-2024 that the company has “no plans for an IPO,” emphasizing instead its focus on product development, treasury transparency, and global expansion.
This strategic divergence—public compliance vs. private agility—raises important questions about what users truly prioritize: regulatory approval or real-world utility?
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Market Cap Growth: USDC Outpaces USDT in Percentage Gains
While USDT leads in payment usage on BitPay, USDC has seen stronger relative growth in market capitalization over the past year.
Per data from CoinGecko:
- USDC market cap rose 88%, from ~$33 billion to **$61.7 billion**
- USDT market cap increased 40%, from $112.5 billion to **$158.3 billion**
On a percentage basis, USDC outperformed significantly—growing 41% year-to-date compared to USDT’s 15.5% increase. However, due to its larger base, USDT still added more absolute value.
This suggests that while institutional inflows and regulated finance (TradFi) adoption may be favoring USDC, retail users and payment-focused applications continue to lean heavily toward USDT.
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Frequently Asked Questions (FAQ)
Q: Is USDT safer than USDC?
A: Both stablecoins are considered relatively safe but operate differently. USDC is fully backed by cash and short-term U.S. Treasuries and is issued by a regulated financial firm. USDT is also backed by reserves, though historically its composition included commercial paper and other assets. Transparency has improved significantly for Tether in recent years.
Q: Why is USDT more popular for payments than USDC?
A: USDT’s broader blockchain support, higher liquidity on exchanges, and long-standing user adoption make it more accessible globally—especially in emerging markets where fast, low-cost transactions are critical.
Q: Does BitPay support other stablecoins besides USDT and USDC?
A: Yes, BitPay also supports PayPal USD (PYUSD) and select other digital currencies. However, USDT and USDC remain the dominant choices for stablecoin payments on the platform.
Q: Will MiCA regulation affect Tether’s performance outside Europe?
A: Not directly. While MiCA gives USDC a regulatory edge in Europe, many global users prioritize functionality over jurisdictional compliance—allowing Tether to maintain strong performance elsewhere.
Q: Can I use USDT for everyday purchases via BitPay?
A: Absolutely. Thousands of merchants worldwide accept payments through BitPay using USDT for everything from travel bookings to tech gadgets and online services.
Q: Has Tether ever lost its $1 peg?
A: Like all stablecoins, USDT has experienced brief de-pegging events during periods of market stress (e.g., 2018, 2022). However, it has consistently returned to parity due to robust redemption mechanisms and reserve backing.
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As the battle for stablecoin supremacy continues, one thing is clear: real-world utility is becoming just as important as regulatory credentials. While Circle builds credibility through compliance and public markets, Tether wins on adoption speed and payment volume—proving that in the fast-moving world of digital finance, market leadership can shift quickly based on user behavior and ecosystem strength.