Circle Issued USDC Witnesses Substantial Growth in Trading Volume
- As of July 25, the market cap of USD Coin (USDC) increased 5.4% to $33.6 billion.
- Circle was the first stablecoin issuer to get approval from EU authorities.
New regulations in Europe regarding digital assets and a jump in market inflows caused Circles stablecoin trading volume to skyrocket in July.
As of July 25, the market cap of USD Coin (USDC) increased 5.4% to $33.6 billion. While the trading volume for USDC pairings on centralized exchanges hit $135 billion, according to a July 31 report from CCData.
After the Markets in Crypto-Assets (MiCA) regulatory framework became live in the EU on July 1, Circle was the first stablecoin issuer to get approval from EU authorities.
Rival Tether (USDT) meanwhile had slower growth. But nevertheless managed to establish a record 11 straight months of market value rises, reaching $114 billion. July saw a 1.6% growth in Tethers market worth.
With a market share of roughly 70%, USDT continues to dominate the stablecoin industry, according to DefiLlama. Furthermore, Tether announced record-breaking earnings of $5.2 billion for the first half of 2024 on July 31.
Complying With MiCA Regulatory Framework
The market capitalization of the stablecoins reached $164 billion in July, a 2.1% rise from the previous month and the highest level since April 2022. On the other hand, as of July 25, trading volume on centralized exchanges has decreased for four consecutive months, falling 8.4 percent to $795 billion.
Before the new regulations went into effect on June 30, some European cryptocurrency exchanges removed stablecoins from their listings.
Stablecoin (ART) and e-money token (EMT) issuers are now required to have a European Union basis, inform the appropriate authorities, and submit a white paper for approval, according to the new regulations. Stricter requirements, such as a daily transaction limit and the need that 60% of reserves be in cash deposits across several banks, may be imposed on large stablecoins.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
