The stablecoin market has experienced a significant shift in recent years, with the once-dominant USDT losing market share to competitors like FDUSD and USDC. According to Kaiko’s latest data, USDT’s market share on centralized exchanges dropped from 82% to 74% in 2024. This decline can be attributed to increased competition and a growing demand for regulated stablecoin options.
USDC, in particular, has seen a surge in market share, reaching an all-time high of 12% by the end of June. This growth can be attributed to the increasing trading volumes on platforms like Binance, Bybit, and OKX. Additionally, the implementation of the MiCA regulation has positioned USDC as a key beneficiary, with the coin being identified as a leading option among regulated stablecoins.
The shift towards compliant stablecoins is further emphasized by the introduction of the Markets in Crypto-Assets Regulation (MiCA) in Europe, which came into effect on June 30. This regulation has prompted major crypto exchanges like Binance, Bitstamp, Kraken, and OKX to delist non-compliant stablecoins, including USDT, for European users. As a result, the share of compliant stablecoins in the market has been steadily growing, signaling a preference for transparent and regulated options.
As the stablecoin market continues to evolve, it is clear that regulatory compliance and transparency are becoming increasingly important factors for market participants. The success of USDC in capturing market share and establishing itself as a top choice among regulated stablecoins is a testament to this trend. With the growing demand for compliant options and the impact of regulations like MiCA, the stablecoin market is likely to see further shifts in the coming years. As market dynamics continue to change, stablecoin issuers will need to adapt to meet the evolving needs of users and regulators alike.
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