The overall stablecoin market capitalization grew by 2.11% in July, reaching $164 billion, in response to CCData.
This marks a ten-month consecutive ascent for main stablecoins, with their market dominance growing to six.93%.
Tether Reaches New Peak
Tether, the most important stablecoin by market cap, noticed a 1.61% enhance to $116 billion, setting a brand new all-time excessive. This marks Tether’s eleventh consecutive month-to-month rise in market capitalization.
In keeping with DefiLlama, Tether (USDT) holds practically 70% of the stablecoin market share. Moreover, the agency reported file earnings of $5.2 billion within the first half of 2024 on July 31.
Whereas different main stablecoins like USD Coin (USDC), BlackRock’s BUIDL, and PayPal USD (PYUSD) noticed will increase, First Digital USD (FDUSD) and Ethena USDe skilled declines in market capitalization.
Among the many prime ten stablecoins, PayPal USD was the most important gainer, rising 17.9% to $589 million, attaining a brand new all-time excessive. However, USDC now accounts for 73.5% of the market share (excluding Tether) among the many prime ten stablecoins by market capitalization.
The report notes that buying and selling volumes on USDC pairs on centralized exchanges rose 48.1% to $135 billion, benefiting from the stablecoin’s compliance with the Markets in Crypto-Property (MiCA) regulation after it took impact in Europe final month.
Total, stablecoin buying and selling volumes fell 8.35% to $795 billion in July amid struggling exercise on centralized exchanges. Regardless of this, the report signifies a development in direction of increased month-to-month volumes following the launch of spot Ethereum ETFs and the optimistic sentiment expressed on the Bitcoin 2024 Convention final week.
MiCA Laws’ Affect
CCData’s report highlights how the latest implementation of the MiCA rules has raised issues about the way forward for Tether (USDT) in Europe, contributing to a lower in stablecoin buying and selling exercise on centralized exchanges.
Below the brand new rules, issuers of stablecoins—together with asset-referenced tokens (ARTs) and e-money tokens (EMTs)—have to be primarily based within the European Union, notify related authorities, and submit a white paper for approval.
In the meantime, bigger stablecoins face stricter rules, akin to a cap on each day transactions and the requirement that 60% of reserves be held in money deposits throughout a number of banks for larger stability and safety out there.
Stablecoins akin to Circle’s USD Coin (USDC) and EUR Coin (EURC) have already complied with these necessities, resulting in elevated confidence and buying and selling exercise.
The introduction of MiCA rules has undoubtedly reshaped the stablecoin panorama in Europe, with compliance changing into a key issue for continued market participation and development.
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