The "duopoly" of stablecoins is coming to an end, with the combined market share of USDT and USDC dropping to 84%

ChainCatcher news, Castle Island Ventures partner Nic Carter posted on the X platform today, pointing out that the "duopoly" in the stablecoin market is coming to an end.

DefiLlama data shows that although the market capitalization of Tether (USDT) and Circle (USDC) continues to grow, their combined market share has dropped from a peak of 91.6% in March 2024 to about 84% currently. Carter believes that the main reason for the decline in market share is the competition from emerging stablecoins, particularly the rise of interest-bearing stablecoins. He referred to Ethena's USDe as the "biggest success story of the year," with its supply soaring to $14.7 billion. Carter also predicts that as regulatory frameworks in places like the US and Europe become clearer (such as the GENIUS Act and MiCA), banks and traditional financial institutions will inevitably enter the stablecoin market. He believes that a consortium of multiple banks will be best positioned to create stablecoins that can compete with Tether.