USDT Gains $5B, Competitors Lose $4.2B – Why It’s a Larry David Moment

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Tether’s USDT swells by over $5 billion this month, while its plastic cousins – USDC, USDe, and PYUSD – shed $4.2 billion in total.

  • Key Takeaways:
  • Tether’s USDT supply grew past $5 billion, hitting roughly $189.7 billion.
  • USDC, USDe, and PYUSD lost a combined $4.2 billion as stable‑coin growth stalls at a mere 0.3%.
  • Ethena’s USDe is down 34% year‑to‑date since October 2025, showing the strain on synthetic dollars.

Tether Consolidates Grip as Rivals Retreat

Tether’s net growth over the last month is about $900 million, a tidy 0.3% of the total supply. Every dollar that slips into the market turns into a Tether dollar, pushing out a redeemed USDC, USDe, or PYUSD.

Now, Tether’s circulating supply is about $189.7 billion, about 60% of the entire stable‑coin market. Add in USDC, and the two incumbents own roughly 93% of the whole category.

Tether’s $5 billion monthly gain isn’t new money pouring in – it’s a rotation, like a carousel taking folks back to the “safe and liquid” world of USDT.

Market share of stablecoins
Market share of different stablecoins per their total capitalization.

The hardest hit is Ethena. Its synthetic dollar USDe dropped 28% last month and is down about 34% year‑to‑date, with outflows since October 2025. PayPal’s PYUSD and Circle’s USDC also fell, but nothing as dramatic.

Two forces are in play. First, US regulation is increasingly favoring Tether; pending legislation like the GENIUS Act is nudging institutions toward the old guard. Second, a “risk‑off” mood has patrons rushing to the liquidest coins – which is still USDT by a landslide.

Bitcoin.com reported that the stable‑coin market crossed $320 billion last month, a milestone that briefly nudged Tether’s dominance down. The latest data shows that dip has flipped, with Tether regaining control even as the total market stalls.

For DeFi protocols that rely on USDe and PYUSD as collateral, this squeeze is going to ripple across borrowing rates and yield opportunities.

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2026-05-20 23:27