$23 Billion Volume Puts USDC at the Head of Regulated Stablecoins


The USDC trading volume has increased to $23 billion in 2024, which is more than double the $9 billion from the previous year.

The USDC stablecoin’s trading volume has increased to $23 billion annually. This expansion coincides with an increasing demand for transparency as traders increasingly favor regulated stablecoin alternatives.

The implementation of the MiCA framework was a significant development, as well as the provision of an entirely revised manual to qualified stablecoin issuers.

According to a Kaiko report, the weekly trading volume of Circle’s USDC stablecoin has increased in 2024. This figure is nearly five times the $5 billion observed in 2022 and more than doubles the $9 billion recorded last year.

USDC has been able to challenge the 14% market share that the reserve-backed stablecoin First Digital USD (FDUSD) possesses as a result of the increase in trading volume. Comparatively to decentralized (DEX) alternatives, the report indicates that centralized exchanges (CEX) are responsible for the majority of these volumes.

The report indicates that USDC and its sibling, the Euro-denominated EURC stablecoin, have experienced the highest daily trading volume since June 30, when the first element of the MiCA framework was implemented in the European Union.

Other stablecoins, including SocGen’s Euro CoinVertible (EURCV), also experienced substantial volume. Nevertheless, it was not as valuable as the EURC, as it is exclusively available on the Bitstamp exchange.

Significant volume increases, in conjunction with the influence of CEXes on the interest, indicate a burgeoning interest in compliant stablecoins. In contrast, the non-compliant counterparts presently hold a majority position in the market, accounting for 88% of the total stablecoin volume. However, the report suggests that MiCA may reverse the situation in favor of the compliant stablecoins.

“The past year has seen a rise in the proportion of compliant stablecoins, which indicates a growing demand for regulated alternatives and transparency. So far, this trend has mostly helped USDC,” a part of the Kaiko Research report said.

June 30 marked a significant milestone in the stablecoin market with the implementation of the MiCA framework in Europe. In conjunction with its implementation, stablecoin issuers were provided with a comprehensively revised manual that outlined specific requirements, including “prudential standards, governance, whitepaper publication,” and “reserves management.”

Circle obtained an Electronic Money Institution (EMI) registration on July 1, one day following the implementation of MiCA. In order to provide dollar- and euro-pegged crypto securities in the EU, issuers must obtain an EMI license. It enables the company to “onshore” its EURC stablecoin, which is denominated in Euros, to consumers within the bloc.

The USDC stablecoin’s popularity is, in fact, being driven by MiCA compliance. Kaiko Research noted that the seal of trust offers additional tailwinds for the stablecoin’s increased use in perpetual futures settlement. During the exploration of stablecoin options, institutional investors may refer to these thresholds, as they have their own compliance requirements when participating in derivatives markets.

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