MiCA bans Tether USDT in Europe, reshaping the stablecoin landscape. This European Union crypto law impacts cryptocurrency markets significantly. It’s changing market share and trading volumes for stablecoins.
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To better understand these circumstances, let’s dive right in! Scroll down for more useful information from the Kaiko Research Team.
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Analyzing the Impact of MiCA’s Stablecoin Regulations on the Crypto Market
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MiCA-Compliant EUR Stablecoins Rise
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MiCA-compliant EUR stablecoins now hold a 67% market share, which is quite an amount. Circle’s EURC and Société Générale’s EURCV lead this growth at the time of writing this guide. Coinbase became the top EUR-stablecoin market in August, meaning that is left Binance in the dust.
USD Stablecoin Market Shifts
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USDC, the largest MiCA-compliant USD stablecoin, grew from 10% to 12% market share. Coinbase’s plan to delist USDT for European users may boost regulated USD stablecoins further.
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Decentralized Exchanges Feel the Impact
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MiCA rules could affect stablecoin dominance on decentralized exchanges (DEXs). DEXs aren’t regulated under MiCA, so they still allow USDT trading. This might attract traders seeking liquidity.
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Crypto.com Challenges SEC
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Crypto.com sued the SEC, disputing claims that some cryptocurrencies are securities. This lawsuit comes as Crypto.com gains BTC trading market share.
Market Volatility Concerns
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Europe’s Tether USDT ban raises volatility and liquidity concerns. U.S. exchange Bitcoin market depth fluctuated. Coinbase’s 2% BTC depth fell 46% after Cumberland charges were announced.
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Regional Trading Patterns
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USDT-USD trading volume peaks during APAC hours. This suggests that Asian-based traders are converting crypto to fiat more often.
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Also Read: XRP Expected to Rise: Analysts Predict $0.75 Soon
MiCA’s implementation and the Tether USDT ban in Europe have reshaped the stablecoin market. Crypto participants now adapt to new regulations and changing trade patterns.