The stablecoin market has seen significant changes in recent years, with Tether’s USDT losing its dominance. Kaiko’s latest data indicates a decline in USDT market share, dropping from 82% to 74% on centralized exchanges in 2024. This shift can be attributed to increased competition from stablecoins like FDUSD and the rising demand for regulated options such as USDC.
Rise of Regulated Stablecoins
USDC, in particular, has seen a surge in market share, reaching an all-time high of 12% by the end of June. This growth is fueled by trading volumes on platforms like Binance, Bybit, and OKX. The implementation of the MiCA regulation has further boosted the demand for compliant stablecoins, with Circle’s USDC emerging as a key player in the market.
The Markets in Crypto-Assets Regulation (MiCA), which came into effect on June 30, is expected to have a significant impact on the stablecoin market. Non-compliant stablecoins currently make up 88% of the total stablecoin volume, but this is likely to change as market makers increasingly favor compliant options. Major exchanges like Binance, Bitstamp, Kraken, and OKX have already started delisting non-compliant stablecoins, including Tether’s USDT, for European users.
Kaiko’s data illustrates a growing share of compliant stablecoins over the past year, reflecting a shift towards more transparent and regulated alternatives. USDC has emerged as the primary beneficiary of this trend, positioning itself as a leading regulated stablecoin in the evolving market landscape.
The stablecoin market is undergoing a transformation, with USDT’s dominance waning in the face of increased competition and regulatory pressures. The rise of regulated stablecoins like USDC signals a shift towards transparency and compliance among market participants. As the industry continues to evolve, it will be crucial for stablecoin issuers to adapt to changing regulatory environments and meet the growing demand for compliant options.
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