Circle’s USD Coin (USDC) saw a big increase in trading volume in July, thanks to more money coming into the market and new European rules for digital assets.
A report from CCData on July 31 showed that trading volume for USDC pairs on centralized exchanges reached $135 billion by July 25. The market value of USDC also went up by 5.4%, reaching $33.3 billion.
This reported increase happened after the European Union started its new Markets in Crypto-Assets (MiCA) rules on July 1. Circle was the first stablecoin issuer to get approval under these new rules.
Tether (USDT), another major stablecoin, also saw significant growth but at a slower pace. Tether’s market value rose by 1.6% in July to $114 billion, marking its 11th straight month of growth.
At the time of writing, USDT remains the largest stablecoin, with the highest daily trading volume of $50 million, and reported record profits of $5.2 billion for the first half of 2024.
Stablecoin Market Cap | Image Source: CoinMaketCap
Overall, the total market value of all stablecoins increased by 2.1% in July, reaching $171 billion, the highest since April 2022.
Despite this growth, trading volume on centralized exchanges dropped by 8.4%, totaling $795 billion by July 25. This was the fourth month in a row that trading volume decreased.
Before the new rules took effect on June 30, several crypto exchanges in Europe including Kraken exchange delisted several stablecoins, especially USDT. The MiCA regulations require stablecoin issuers to be based in the EU, notify authorities of all activities, and submit a white paper for approval.
Larger stablecoins like Tether and USDC faced stricter rules, including limits on daily transactions and the need to hold 60% of their reserves in cash deposits across several banks.
Also Read: Bybit Applauds EU’s MiCA Approval of USDC Stablecoin
