Stablecoin Market Cap Hits $164M, Extends 10-Month Growth Streak: CCData

Total stablecoin market capitalization grew 2.11% in July to $164 billion, according to CCData.

This marks a ten-month consecutive rise for the major stablecoins, with their market dominance increasing to 6.93%.

Tether reaches new peak

Tether, the largest stablecoin by market cap, rose 1.61% to $116 billion, setting a new all-time high. This marks Tether’s eleventh consecutive monthly increase in market capitalization.

According to DefiLlama, Tether (USDT) has almost 70% of the stablecoin market share. Additionally, the company reported record profits of $5.2 billion in the first half of 2024 as of July 31.

While other major stablecoins like USD Coin (USDC), BlackRock’s BUIDL, and PayPal USD (PYUSD) saw increases, First Digital USD (FDUSD) and Athena USDe experienced decreases in market cap.

Among the top ten stablecoins, PayPal USD was the biggest gainer, rising 17.9% to $589 million, hitting a new all-time high. On the other hand, USDC now represents 73.5% of the market share (excluding Tether) among the top ten stablecoins by market cap.

The report notes that trading volumes of USDC pairs on centralized exchanges rose 48.1% to $135 billion, benefiting from the stablecoin’s compliance with the Markets in Crypto Assets Regulation (MiCA) after which came into force in Europe last month.

Overall, stablecoin trading volumes fell 8.35% to $795 billion in July amid difficult activity on centralized exchanges. Despite this, the report indicates a trend towards higher monthly volumes following the launch of spot Ethereum ETFs and the positive sentiment expressed at the Bitcoin Conference 2024 last week.

Influence of MiCA regulations

CCData’s report highlights how the recent implementation of MiCA regulations has raised concerns about the future of Tether (USDT) in Europe, contributing to a decline in stablecoin trading activity on centralized exchanges.

Under the new regulations, issuers of stablecoins, including asset reference tokens (ARTs) and electronic money tokens (EMTs), must be based in the European Union, notify relevant authorities and submit a white paper for approval.

Meanwhile, larger stablecoins face tighter regulations, such as a limit on daily transactions and a requirement that 60% of reserves be held in cash deposits at various banks for greater stability and security in the market.

Stablecoins such as Circle USD (USDC) and EUR (EURC) have already met these requirements, increasing confidence and trading activity.

The introduction of MiCA regulations has undoubtedly reshaped the stablecoin landscape in Europe, and compliance has become a key driver for continued market participation and growth.

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