During the holiday season, Tether USDT's market cap saw a significant decline, sparking discussions among market participants about potential implications.
Holiday Decline and MiCA Law
Tether USDT's market cap dropped over 2.8% amid reduced trader activity during the Christmas holidays. According to Coingecko, market cap declined from December’s peak of $141 billion to $137.2 billion. Daily trading volumes also fell 64% from mid-December’s $155 billion to $55 billion by January 6. This is partly attributed to the delisting of USDT from multiple European exchanges due to MiCA compliance issues.
Community and Experts’ Reaction
Experts like Karen Tang and analyst Axel Bitblaze dismissed fears of MiCA’s impact on USDT, emphasizing its dominance in the US and Asian markets, where 80% of USDT trading occurs. Bitblaze highlighted that misinformation about USDT’s illegality in the EU is exaggerated, and EU clients can use USDT in non-custodial wallets and DEXs, although MiCA-compliant exchange use is restricted.
Tether’s Forecasts and Measures
The community criticized the FUD around MiCA and Tether. Analysts predict stablecoin bullish momentum may soon resume. Tether is investing in EU-based companies to maintain its market position. CEO Paulo Ardoino assured customers of continued USDT support, reminding them about the use of non-custodial wallets.
Despite temporary challenges and European delisting, Tether continues to seek ways to strengthen its global market presence. The impact of MiCA and the holiday lull on USDT's market cap requires close attention and may have long-term effects.
