As a seasoned crypto investor with a decade of experience under my belt, I must say that the recent growth of Circle’s USD Coin (USDC) is nothing short of impressive. The European Union’s MiCA rules seem to have given USDC a significant boost, making it the first stablecoin issuer to receive approval under these new regulations. This move has undoubtedly contributed to the surge in trading volume and market value that we witnessed in July.
In July, there was a significant surge in trading activity for US Dollar Coins (USDC) issued by Circle. This boost was due to an influx of funds entering the market and newly implemented regulations concerning digital assets within Europe.
On July 31, according to a report from CCData, the trading volume for USD Coin (USDC) pairs on centralized exchanges had peaked at an impressive $135 billion as early as July 25. Furthermore, the market value of USDC experienced a 5.4% increase, reaching approximately $33.3 billion.
As a researcher, I’ve noticed an intriguing surge in events occurring post the implementation of the European Union’s new Markets in Crypto-Assets (MiCA) regulations on July 1. Notably, Circle became the pioneering stablecoin issuer to secure approval under these novel rules.
Another prominent stablecoin, USDT, experienced notable growth albeit at a more gradual rate compared to other months. In July, the market value of Tether increased by approximately 1.6%, reaching an impressive $114 billion. This represents the 11th consecutive month of expansion for Tether.
Currently, USDT stands as the leading stablecoin, boasting a daily trading volume of approximately $50 million, and racking up impressive earnings of around $5.2 billion in profit during the first six months of 2024.
As a researcher, I’ve observed an uptick in the overall market value of stablecoins, noting a significant 2.1% rise during the month of July. This surge has pushed the total market capitalization to a staggering $171 billion – a figure not seen since April 2022.
Even though there was an increase, it’s worth noting that over the past four months, the trading volume on centralized exchanges has consistently dropped, with a 8.4% decrease as of July 25th, amounting to $795 billion in total. This downward trend indicates a decline in trading activity.
As a crypto investor in Europe, prior to June 30th, I noticed that several exchanges such as Kraken were removing popular stablecoins like USDT from their platforms. This was due to the upcoming MiCA regulations which demand that stablecoin issuers be EU-based, report all activities to authorities, and obtain approval for their white papers.
These larger stablecoins such as Tether and USDC are now subject to tighter regulations, which include setting a cap on daily transactions and requiring them to maintain at least 60% of their total reserves in the form of cash deposits spread across multiple financial institutions.
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2024-08-01 00:36