Regulation
European Stablecoin Market Drops Due to New MiCA Rules Imposed
The market capitalization of European stablecoins declined in June due to the implementation of the Markets in Crypto-Assets (MiCA) regulation, according to the latest stablecoin from CCData relationship.
The market capitalization of euro-based stablecoins fell 2.51%, hitting a seven-month low of $307 million, the lowest since November 2023. During this period, Bonds The market capitalization of the EURT stablecoin dropped by 26%, mainly due to its delisting from major exchanges such as Bitstamp.
CCData noted that Not The implementation has spurred interest in stablecoins that comply with local laws. MiCA, the EU’s comprehensive cryptocurrency regulatory package, was recently enacted. It allows companies licensed by one member state to operate across the EU.
However, stablecoin issuers like Tether have criticized rules for their stringent requirements, such as limits on trading volumes for some stablecoins.
Despite these challenges, several issuers and their stablecoins, including USDC and EURC of the circle, The EURCV of Societe Generale, the EURe of Monerium, the EURoe of Membrane and the EURD of Quantoz are recognized by law.
Stablecoin volume drops
In June, the global stablecoin market capitalization increased 0.53% to $161 billion, marking a nine-month streak of growth and the highest stablecoin market capitalization since April 2022.
CCData said:
“Stablecoin market dominance currently stands at 6.83%, up from 6.22% in May. The rise in stablecoin dominance highlights the negative trend in digital asset prices, with Bitcoin and Ethereum retracing gains made following the surprise approval of Ethereum spot ETFs in the United States.”
Despite the growth, the momentum of stablecoin trading has slowed due to the downturn in the digital asset market.
Stablecoin trading volume on centralized exchanges fell 18% to a seven-month low of $907 billion in June. Similarly, on-chain transfer volume fell for the second consecutive month by 7.5% to $1.8 trillion, the lowest since February 2024. This decline is in line with the persistent bearish sentiment in the market.
The report also highlighted that USDC saw the highest on-chain transfer volume in June, surpassing USDT and DAI.
CCData said:
“Among the top five stablecoins on Ethereum, USDC leads the way with $786 billion in on-chain transfer volume, accounting for 43.6% of the market share. USDT and DAI follow with transfer volumes of $616 billion and $334 billion, accounting for 34.2% and 18.5% of the volumes.”
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Posted in: European Union, Stablecoins