USDC Gains Popularity as Demand for Regulated Stablecoins Rises

Circle’s USDC stablecoin is currently experiencing the highest demand among regulated stablecoins, according to data from Kaiko.

Kaiko’s recent report highlights that after Circle announced that its USDC and EURC stablecoins would comply with European Markets in Crypto-assets Regulation (MiCA), both have seen significant volume increases.

While non-compliant stablecoins still dominate the market, comprising 88% of the total stablecoin volume, there is a noticeable shift towards regulated products.

This shift could be driven by a growing preference for transparency in the market. Exchanges and market makers may begin favoring compliant stablecoins, especially as major crypto exchanges like Binance, Bitstamp, Kraken, and OKX have started restricting or delisting non-compliant stablecoins for their European users.

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In the past year, the volume share of compliant stablecoins has risen, reflecting this increased demand for regulated alternatives. So far, this trend has mainly benefited USDC.

Another contributing factor to USDC’s growth is its rising use in perpetual futures settlement, even though its market share is still much smaller compared to Tether’s USDT.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.