Tether’s USDt and Circle’s USDC have seen a decline in market share over the past year, dropping more than 5% since Oct. 2, 2024. Industry analyst Nic Carter predicts this trend will continue, highlighting the emergence of new stablecoins like Ethena’s USDe. Banks are also expected to enter the stablecoin market. USDT and USDC peaked at 91.6% market share in March 2024, but have since fallen to 83.6%.

Carter believes that new stablecoins offering yields will challenge the dominance of USDT and USDC. He mentions successful stablecoins like Ethena’s USDe and predicts the trend of yield-bearing stablecoins will continue to rise despite regulatory pressure. Carter also anticipates a rise in bank-issued stablecoins and collaborations between major financial institutions. European banks are already joining the trend, with a potential euro-denominated stablecoin expected to be issued by the second half of 2026.

Read more at Cointelegraph: USDT, USDC Dominance Falls To 82% Amid Rising Competition