The stablecoin market has reached a new record of $224 billion, with significant contributions from USDT and USDC. Let's explore their growth and future market implications.
Growth of USDC and USDT since 2023
The stablecoin market grew by over 84%, from $121.18 billion in August 2023 to $224 billion. USDT and USDC have been the most significant contributors, with USDT holding the highest market cap at $139 billion. However, USDC is gaining traction. Alphractal suggests USDC's popularity rose amid altcoin declines, with many sell-offs converting into USDC.
USDC Nears $55 Billion
USDC's market cap reached $53.33 billion, marking a 120% increase from $24.1 billion in November 2023. As of January 31, it holds a 24.6% market share. The trading volume stands at $8.855 billion, down from its $20 billion peak on January 18. Circulation saw a 78% year-over-year growth, although potential changes in the European market looms due to MiCA regulations.
Implications for Europe
Crypto.com will delist USDT and USDC due to the EU's MiCA regulations. The platform has also removed Wrapped Bitcoin (WBTC), Dai (DAI), Pax Dollar (PAX), Pax Gold (PAXG), and PayPal USD (PYUSD). Purchases are no longer possible, yet withdrawals remain available until the end of Q1 2025.
With substantial stablecoin market growth and specific impacts from USDT and USDC, forthcoming changes in European markets might influence the industry's future. Further growth and regulatory adaptation are anticipated.