Stablecoins Market Tightens as Tether and Circle Control 84% of Supply

TLDR: Tether and Circle together control 84.56% of the stablecoin market, leaving 15% for all other projects. USDC settled over $1.2 trillion in transaction volume last month, more than doubling January’s figures. DAI, once the face of decentralized stablecoins, now holds less market share than PayPal’s PYUSD product. Both Tether and Circle can freeze user funds via one API call, raising concerns about crypto centralization. Stablecoins remain a focal point in digital finance as new data reveals a deeply concentrated market. Two companies — Tether and Circle — now control 84.56% of the entire stablecoin supply. USDT holds 59.74% of market share, and USDC accounts for 24.82%. In parallel, USDC settled over $1.2 trillion in transaction volume last month. That figure surpassed Tether for the second consecutive month. The remaining share is spread across dozens of smaller competing projects. Two Centralized Issuers Hold the Stablecoin Market in a Tight Grip The stablecoin market has grown increasingly narrow, with two issuers pulling far ahead of all others. Tether’s USDT alone holds nearly 60% of circulating stablecoin supply. Circle’s USDC adds another 24.82%, per data shared by @ourcryptotalk. Together, they leave approximately 15% for all remaining projects combined. The entire stablecoin market is basically two companies and a graveyard. > $USDT: 59.74%> $USDC: 24.82% That's 84.56% of the entire market.controlled by Tether and Circle. Two private companies.deciding what "stable" means for all of crypto. ↓ Everything else is fighting… pic.twitter.com/9VMeKLAsCu — Our Crypto Talk (@ourcryptotalk) March 5, 2026 Within that leftover share, competition is spread thin across many projects. USDS holds 2.26%, followed by USDe at 1.95% and USD1 at 1.51%. DAI and PayPal’s PYUSD hold 1.46% and 1.37%, respectively. Dozens of other projects share the remaining 6.89%, grouped under a broader “Others” category. DAI’s current standing is a notable turn for the decentralized fin...