USDC Trading Volume Soared 50% in July

Circle’s stablecoin trading volume surged in July due to increased market inflows and new European regulations for digital assets.

According to a report by CCData on July 31, the trading volume for USD Coin pairs on centralized exchanges reached $135 billion by July 25, while its market capitalization rose by 5.4% to $33.6 billion.

With the introduction of the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework, Circle became the first stablecoin issuer to receive regulatory approval in the region on July 1.

During the same period, Tether experienced slower growth but still achieved a record 11 consecutive monthly market capitalization increases, reaching $114 billion. Tether's market cap grew by 1.6% in July.

According to DefiLlama, USDT maintains the largest market share of any stablecoin at nearly 70%.

Additionally, Tether reported record profits of $5.2 billion in the first half of 2024 on July 31.

The overall market capitalization of stablecoins increased by 2.1% in July, reaching $164 billion, the highest level since April 2022.

However, trading volume on centralized exchanges decreased by 8.4% to $795 billion by July 25, marking the fourth consecutive month of decline.

Several crypto exchanges in Europe delisted stablecoins ahead of the new regulations on June 30.

Under the new rules, issuers of stablecoins (asset-referenced tokens, ARTs, and e-money tokens, EMTs) must be based in the European Union, notify relevant authorities, and submit a white paper for approval.

Large stablecoins may face stricter regulations, such as a cap on daily transactions and a requirement that 60% of reserves be held in cash deposits across multiple banks.

“Very few banks accept this type of business in Europe. It’s already very difficult to get just one!” noted Tether CEO Paolo Ardoino in a May interview.

Sources:

https://cointelegraph.com/news/usdc-trading-volume-soars-july-mica-market-growth

https://ccdata.io/reports/stablecoins-cbdcs-report-july-2024