$USDC USDC also faces serious challenges: the Federal Reserve's interest rate hikes have led to a decrease in reserve income, pressuring the issuer's profitability; Tether (USDT), leveraging its first-mover advantage, still holds a 70% market share; and under increasingly strict regulations, the demand for transparency in reserve assets continues to rise. With competitors like PayPal launching similar products, USDC needs to accelerate innovation within a compliance framework to maintain its market share.