Tether's stronghold on the stablecoin market, propelled by USDT's pioneering status as the first fiat-backed stablecoin, faces formidable challenges from emerging competitors. Over the years, new contenders have entered the scene, intensifying the competition for dominance. Notably, Circle's USD Coin (USDC) has experienced a significant uptick in transaction volume since 2024, marking a notable shift in the market dynamics.

The rise of USDC has been marked by milestones, such as surpassing USDT in monthly transactions as reported by Visa in December 2023. Since March 2024, USDC's transaction volume has shown steady growth, contrasting with a decline in USDT's volume. By March 24, 2024, USDC had achieved nearly five times the weekly transaction volume of USDT. This trend continued, with USDT's weekly volume dwindling to $89 billion by April 21, 2024, while USDC surged to $455 billion. Despite being launched in 2018, USDC has swiftly captured 20% of the stablecoin market, setting the stage for a competitive battle for dominance between USDT and USDC.