Stablecoins Dominate Crypto Revenue: Capturing 75% as Market Competition Intensifies
Stablecoins aren't just stable—they're stealing the show. While volatile assets grab headlines, these digital anchors are quietly vacuuming up three-quarters of all crypto revenue.
The Battle for Dollar-Denominated Dominance
As regulatory scrutiny tightens and traditional finance institutions circle like vultures, stablecoin providers are locked in a brutal fight for market share. The prize? Control over the plumbing that powers everything from DeFi protocols to cross-border payments.
Meanwhile, legacy banks are still trying to figure out whether blockchain is a threat or opportunity—classic finance paralysis. They're so busy debating internal compliance policies that they're missing the real revolution happening right under their noses.
Seventy-five percent doesn't lie. While crypto maximalists argue about which dog-themed coin will moon next, stablecoins are actually building the financial infrastructure of tomorrow. Sometimes the most boring technology makes the biggest impact—and the fattest profits.
Tether’s Profitability Sets Industry Benchmark
Tether, the issuer of USDT,the industry’s profit leader, with CEO Paolo Ardoino revealing that the company is on track to earn $15 billion in 2025 – boasting a staggering 99% profit margin. Its business model centers on earning yield from reserve assets such as U.S. Treasuries and cash equivalents, with the interest retained rather than paid to users.
The GENIUS Act, enacted in July, formalized this model by banning licensed stablecoin issuers from paying interest to holders, ensuring that payment stablecoins function as digital cash, not investment vehicles.
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Rising Competition Spurs Innovation
Still, competition in the sector is heating up. The synthetic dollar USDe has climbed to become the third-largest stablecoin, drawing users with its yield-bearing design. Meanwhile, Coinbase has started offering 3.85% APY on USDC holdings – a move that sidesteps the GENIUS Act’s restrictions by letting an exchange, not the issuer, provide rewards.
As Tether works to expand its USAT product – a U.S.-regulated, dollar-backed counterpart to USDT – stablecoin providers are entering a new phase of competition, one defined less by dominance and more by innovation in user incentives and regulatory compliance.
