CCData: Stablecoin market value hits $164B, continuing 10-month growth trend

In keeping with knowledge from CCData, the whole market worth of stablecoins elevated by 2.11% in July, reaching $164 billion.

This marks the tenth consecutive month of features for the most important stablecoin, with its market dominance rising to six.93%.

Tether reaches new peak

Tether is the biggest stablecoin by market capitalization. saw Development of 1.61% to $116 billion, a report excessive. This marks the eleventh consecutive month that Tether’s market capitalization has elevated.

In keeping with DefiLlama, Tether (USDT) holds practically 70% of the stablecoin market. Moreover, the corporate reported report earnings of $5.2 billion within the first half of 2024 on July 31.

Whereas different main stablecoins equivalent to USD Coin (USDC), BlackRock’s BUIDL, and PayPal USD (PYUSD) have seen features, First Digital USD (FDUSD) and Ethena USDe have seen their market caps fall.

Among the many high ten stablecoins, PayPal USD noticed the biggest enhance, rising 17.9% to $589 million, a report excessive. Alternatively, among the many high ten stablecoins by market capitalization, USDC presently occupies 73.5% of the market share (excluding Tether).

The report identified that the buying and selling quantity of the USDC foreign money pair on centralized exchanges elevated by 48.1%, reaching $135 billion, benefit The stablecoin complies with Markets in Crypto-Belongings (MiCA) rules after they got here into impact in Europe final month.

Total, stablecoin buying and selling quantity fell 8.35% in July to $795 billion as exercise on centralized exchanges struggled. Nonetheless, the report exhibits an upward pattern in month-to-month buying and selling volumes following the launch of the spot Ethereum ETF and the constructive sentiment expressed ultimately week’s Bitcoin 2024 convention.

Influence of MiCA rules

CCData’s report highlights current developments implement The rollout of MiCA rules has raised issues about the way forward for Tether (USDT) in Europe, resulting in reduce Stablecoin buying and selling exercise on centralized exchanges.

Below the brand new rules, issuers of stablecoins, together with Asset Reference Tokens (ART) and Digital Cash Tokens (EMT), should be situated within the EU, notify related authorities, and submit a white paper for approval.

On the similar time, bigger stablecoins face stricter rules, equivalent to every day transaction caps and necessities for 60% of reserves to be deposited in a number of banks within the type of money deposits to enhance market stability and safety.

Stablecoins equivalent to Circle’s USD Coin (USDC) and Euro Coin (EURC) already meet these necessities, boosting confidence and buying and selling exercise.

The introduction of MiCA rules has undoubtedly reshaped the European stablecoin panorama, and compliance has develop into a key issue for continued market participation and progress.