Stablecoin

2024

Bitcoin

The third quarter of 2024 saw a surge in stablecoin use and adoption, according to Coinbase’s 4th Quarter Guide to Crypto Markets report with Glassnode.&nbsp; 
Stablecoins hit an all-time high market capitalization of nearly $170 billion in Q3 2024, according to the <a href="https://coinbase.bynder.com/m/1c89e383fea72368/original/Q4-2024-Guide-to-Crypto-Markets.pdf" target="_blank" rel="nofollow">report</a>. This growth occurred alongside the implementation of the European Union’s new <a rel="" href="https://crypto.news/tag/mica/">Markets in Crypto-Assets regulation</a>, which introduced clearer rules for <a rel="" href="https://crypto.news/tag/stablecoin/">stablecoin</a> operations. 
Stablecoins <a href="https://crypto.news/stablecoins-bring-new-retailers-to-crypto-opinion/" target="_blank">have become a key tool</a> for users seeking faster, cheaper, and more secure transactions. Their utility in payment systems, including remittances and cross-border transfers, has continued to expand.&nbsp; 
Recently, Anthony Pompliano <a href="https://crypto.news/teslas-automation-will-help-with-stablecoin-adoption-pompliano/" target="_blank">argued</a> that tech innovations outside of crypto could lead to a new era in which stablecoins become the primary transaction medium in a machine-driven economy. This increased adoption reflects the growing role of stablecoins in crypto trading and real-world financial systems. 
According to the report, stablecoin volumes have reached nearly $20 trillion year-to-date as of the third quarter, indicating their growing role in the global economy. 
<figure class="wp-block-image">
 <img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXf91IbMJJcyNvMiZsFm1OR2f4p6ZIhhrIPa5wcuL14Gg80tX0hJqHaILteStL7kuPyqOS_P9oN7tpJ05x0zj4qLK801iRul3sbkUV0yX7C5jTyVM2E2p6wvgnJyHmtWOvJpk2HOPYQqkPCQV0TZ8uR7oW09?key=pwh9gt8z96qEu7guqtNXcA" alt="Stablecoin usage surged in Q3 as market cap hits $170b: Coinbase - 32">
 <figcaption class="wp-element-caption">
 Source: <a href="https://coinbase.bynder.com/m/1c89e383fea72368/original/Q4-2024-Guide-to-Crypto-Markets.pdf" target="_blank" rel="nofollow">Coinbase and Glassdoor</a>
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</figure> 
 You might also like: <a rel="" href="https://crypto.news/q3-crypto-market-rundown-who-thrived-who-crashed/"> Q3 crypto market rundown: Who thrived, who crashed, and what’s next? </a> 
<h2 class="wp-block-heading" id="stablecoin-and-bitcoindominance">Stablecoin and Bitcoin&nbsp;dominance</h2> 
Stablecoin dominance also increased in Q3 alongside Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank">BTC</a>), with crypto investors gravitating toward what they see as the highest-quality digital assets. 
The current BTC cycle closely tracks the 2015-2018 and 2018-2022 cycles, which ended with nearly 2,000% and 600% returns, according to the report.&nbsp; 
<figure class="wp-block-image">
 <img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXc_X2tz48pu0C3EobHsJ6rjtQvFMGIf-ZeWuytiz3nIE1Lnp2n2XkzivSrhyCu1xaeb5G22BftLNCgwl7XqEJ9wfM04TsVqNbe7MFEj13991jadx_dlAc8fYEGFfKO7ju44c-2u3G8l8OY8TlLITaC9CNGB?key=pwh9gt8z96qEu7guqtNXcA" alt="Stablecoin usage surged in Q3 as market cap hits $170b: Coinbase - 33">
 <figcaption class="wp-element-caption">
 Source: <a href="https://coinbase.bynder.com/m/1c89e383fea72368/original/Q4-2024-Guide-to-Crypto-Markets.pdf" target="_blank" rel="nofollow">Coinbase and Glassdoor</a>
 </figcaption>
</figure> 
 You might also like: <a rel="" href="https://crypto.news/paxos-launches-stablecoin-payments-platform-with-stripe-as-first-customer/"> Paxos launches stablecoin payments platform with Stripe as first customer </a> 
<h2 class="wp-block-heading" id="what-is-mica">What is MiCA?</h2> 
The Markets in Crypto-Assets Regulation <a rel="" href="https://crypto.news/mica-will-transform-the-eu-into-a-crypto-adoption-hub-this-year-opinion/">is a comprehensive framework</a> enacted by the European Union in June 2023 to regulate the crypto industry across its 27 member countries. It initiates a 12-18 month transition period for implementing rules on anti-money laundering, combating the financing of terrorism and digital asset custody, among others. 
MiCA’s impact on stablecoins still remains to be seen, but Tether (<a href="https://crypto.news/price/tether/" target="_blank">USDT</a>) CEO Paolo Ardoino <a rel="" href="https://crypto.news/tether-ceo-warns-mica-stablecoin-rules-could-pose-systemic-risks-to-eu-banks/">expressed concern</a> that MiCA’s 60% cash reserve requirement for stablecoins could create systemic risks for European banks. He argued that such regulations might exacerbate liquidity issues during large-scale redemptions, potentially leading to bank failures. 
 You might also like: <a rel="" href="https://crypto.news/bitcoin-crosses-67k-to-hit-2-month-high/"> Bitcoin crosses $67k to hit 2-month high </a>

Stablecoin usage surged in Q3 as market cap hits $170b: Coinbase

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