Stablecoin Market Trends

Despite a number of high-profile incidents and de-pegging events, stablecoins have continued to gain traction in the market, drawing strong demand. While Tether’s USDT has long been the dominant player in the stablecoin market, recent data shows a shift in market share.

Decline in USDT Market Share

Recent data from Kaiko indicates a decrease in USDT’s market share on centralized exchanges. In 2024, USDT’s market share dropped from 82% to 74%, with competition from stablecoins like FDUSD and the rising popularity of regulated options such as USDC contributing to this decline.

Increasing Demand for USDC

The implementation of the MiCA regulation has led to a surge in demand for compliant stablecoins, with USDC emerging as a frontrunner in this space. Non-compliant stablecoins currently make up the majority of stablecoin volume, but this is expected to change with the shift towards regulated options prompted by MiCA.

Major exchanges like Binance, Bitstamp, Kraken, and OKX have already started delisting non-compliant stablecoins for European users, further solidifying the position of compliant stablecoins like USDC in the market. As preferences shift towards transparency and regulation, USDC is positioned as a key player in the evolving stablecoin market landscape.

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