USDC Trading Volume Surges in July Amid New EU Regulations

Circle's USD Coin (USDC) experienced a significant boost in trading volume and market capitalization in July, largely influenced by new European digital asset regulations.

A report from CCData on July 31 revealed that USDC trading on centralized exchanges hit $135 billion by July 25, with its market cap increasing by 5.4% to $33.6 billion. This growth coincides with Circle becoming the first stablecoin issuer approved under the European Union’s new Markets in Crypto-Assets (MiCA) framework as of July 1.

In comparison, Tether (USDT) continued to grow, albeit at a slower pace, reaching a market cap of $114 billion with a 1.6% rise in July. Despite the slower growth, USDT maintains the largest share of the stablecoin market at nearly 70%, and Tether reported a record $5.2 billion profit for the first half of 2024.

Overall, the stablecoin market saw a 2.1% increase in capitalization, reaching $164 billion, the highest since April 2022. However, trading volume on centralized exchanges dropped by 8.4% to $795 billion by July 25, marking a fourth month of decline.

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Ahead of the new EU rules, several European exchanges delisted stablecoins. The regulations require issuers to be EU-based, notify authorities, and submit an approved white paper. Larger stablecoins face additional restrictions, including transaction caps and holding 60% of reserves in various banks. Tether CEO Paolo Ardoino highlighted the difficulty in finding European banks willing to handle stablecoin business.

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.