Ethereum

Cryptocurrency

USDC

Read

Coin

As Europe gears up for the implementation of MiCA regulations, demand for compliant stablecoins has primarily benefited only one company, data shows. 
Europe’s Markets in Crypto-Assets Regulation (<a href="https://crypto.news/tag/mica/" target="_blank" rel="noreferrer noopener">MiCA</a>), aimed at regulating the crypto market and specifically targeting stablecoins, triggered a rush among issuers to comply. However, despite the apparent competition, only one stablecoin firm has benefited from the stringent regulations so far — <a href="https://crypto.news/tag/circle/" target="_blank" rel="noreferrer noopener">Circle</a>. 
According to data from French blockchain analytics firm Kaiko, Circle’s Euro-pegged stablecoin (EURC) and its more known USD Coin (<a href="https://crypto.news/price/usd-coin/" target="_blank" rel="noreferrer noopener">USDC</a>) have experienced the most significant increases in daily trading volumes following the implementation of MiCA. 
<figure class="wp-block-image size-large">
 <picture loading="lazy" decoding="async" class="wp-image-14283743"> 
 <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/07/iusdhfisdu-1024x395.png.webp"> 
 <img loading="lazy" decoding="async" width="1024" height="395" src="https://crypto.news/app/uploads/2024/07/iusdhfisdu-1024x395.png" alt="MiCA regulations mostly benefited USDC, Kaiko says - 21"> 
 </picture> 
 <figcaption class="wp-element-caption">
 MiCA-compliant stablecoins | Source: Kaiko
 </figcaption>
</figure> 
Société Générale, which has also developed its own stablecoin called Euro Convertible (EURCV), after lifting its <a href="https://crypto.news/new-euro-stablecoin-receives-backlash-from-crypto-community/" target="_blank" rel="noreferrer noopener">dubious restrictions</a>, also saw a volume uptick, Kaiko says, noting though that it remained modest at $4,000, likely due to its availability solely on Bitstamp. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “[…] the share of compliant stablecoins has increased over the past year, suggesting increased demand for transparency and regulated alternatives. So far, this trend has mostly benefited USDC.” 
 Kaiko 
</blockquote> 
Currently, non-compliant stablecoins dominate the market, “accounting for 88% of the total stablecoin volume,” the Paris-headquartered firm says, adding though that MiCA “could shift this balance as exchanges and market makers favor compliant stablecoins over non-compliant alternatives.” 
Major crypto exchanges like Binance, Bitstamp, Kraken, and OKX have already started delisting non-compliant stablecoins for their European customers. 
 You might also like: <a href="https://crypto.news/mica-is-live-how-new-eu-regulation-will-affect-the-global-crypto-market/"> MiCA is live: How new EU regulation will affect the global crypto market </a> 
<figure class="wp-block-image size-large">
 <picture loading="lazy" decoding="async" class="wp-image-14283746"> 
 <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/07/aosidjoaisdas-1024x552.png.webp"> 
 <img loading="lazy" decoding="async" width="1024" height="552" src="https://crypto.news/app/uploads/2024/07/aosidjoaisdas-1024x552.png" alt="MiCA regulations mostly benefited USDC, Kaiko says - 22"> 
 </picture> 
 <figcaption class="wp-element-caption">
 USDC weekly market share of volume | Source: Kaiko
 </figcaption>
</figure> 
In 2024, USDC’s weekly trading volume surged to $23 billion, up from $9 billion in 2023 and $5 billion in 2022, pushing USDC’s market share to a record high, what Kaiko attributes to its increased usage on both decentralized exchanges (DEXs) and centralized exchanges (CEXs). 
Another factor driving USDC’s growth is its increased use for perpetual futures settlement, the firm says, noting that the share of Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a>) perpetuals denominated in USDC traded on Binance and Bybit rose to 3.6% from 0.3% in just six months. Moreover, USDC’s usage in Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noreferrer noopener">ETH</a>) perpetuals trading also grew, with ETH-USDC trade volume rising to over 6.8% from 1% at the beginning of the year. 
In early July, Circle announced it had become the first stablecoin company to achieve compliance with MiCA policies. Meanwhile, speculation <a href="https://crypto.news/is-cryptos-greatest-crash-around-the-corner-the-threat-of-tethers-usdt-collapse/" target="_blank" rel="noreferrer noopener">arose</a> about Tether’s future in Europe after platforms like Bitstamp delisted its euro-denominated offering, Tether EURT. Additionally, the European crypto trading platform Uphold <a href="https://crypto.news/uphold-ceases-support-for-usdt-gusd-tusd-due-to-european-new-law-report/" target="_blank" rel="noreferrer noopener">ceased</a> support for USDT and several other dollar-pegged stablecoins. 
 Read more: <a href="https://crypto.news/cryptocurrency-after-the-european-unions-mica-regulation-opinion/"> Cryptocurrency after the European Union’s MiCA regulation | Opinion </a>

MiCA regulations mostly benefited USDC, Kaiko says

crypto.news

Інші статті, опубліковані 9 лип. 2024 р.

Cardano’s Chang Hard Fork: A Turning Point for Decentralized Governance & ADA Price?

Soccer Legend Lionel Messi's Instagram Account Posts Unexpected Solana Meme Coin Promo

The Journey of Rune Christensen and MakerDAO’s Success

Goldsky Integrates IOTA EVM

ShardLab Launches Innovative AA and zk based App for Digital Identity and Voucher Distribution

Nigeria’s Finance Minister Calls on SEC to Regulate Cryptocurrency

Приєднуйтеся до нашої безкоштовної розсилки для отримання щоденних оновлень щодо крипто!