The trading volume of steblecoins issued by Circle increased significantly in July 2024. This is due to the influx of new funds into the market and the introduction of new European regulations for digital assets known as MiCa. According to a July 31 report from CCData, USD Coin (USDC) trading volume on centralized exchanges reached $135 billion and its market capitalization increased 5.4% to $33.6 billion.

With the European Union's MiCa regulatory framework coming into effect, Circle became the first stablecoin issuer to receive approval from European regulators. At the same time, Tether (USDT) volumes have grown more slowly. USDT currently has a market capitalization of $114 billion, up 1.6% from July. According to DefiLlama, USDT retains nearly 70% of the stackcoin market share. In addition, Tether's management reported record profits of $5.2 billion for the first half of 2024.

Analysts at Cointelegraph noted that the total value of stackablecoins in the market increased 2.1% in July to $164 billion, the highest since April 2022. However, trading volume on centralized exchanges fell 8.4% to $795 billion as of July 25. This was the fourth consecutive decline, indicating some instability in the market.

Several cryptocurrency exchanges in Europe have decided to delist stablecoins from their listings in anticipation of new MiCa regulations coming into effect on June 30. These new laws require issuers of asset-backed stablecoins (ARTs) and electronic money tokens (EMTs) to have legal representation in the European Union, notify the relevant authorities and obtain the appropriate licenses. Larger stablecoins may face stricter requirements, such as restrictions on daily transactions and the obligation to hold 60% of reserves in the form of cash deposits in different banks.

Tether CEO Paolo Ardoino noted that “very few banks accept this type of business in Europe, and it is extremely difficult to reach an agreement with even one of them.” This underscores the difficulties faced by stablecoin issuers in the face of new regulatory requirements.

Thus, despite the growth in trading volumes and capitalization of some stablecoins, the market continues to face pressure from new regulations and changes in demand for digital assets.