USDC trading volume climbed 48% in July thanks to the MiCA regulatory framework and significant market inflows.

USDC Trading Volume Hits $135 Billion

New regulations in Europe regarding digital assets and a jump in market inflows caused Circle's stablecoin trading volume to skyrocket in July.

As of July 25, the market value of USD Coin increased 5.4% to $33.6 billion, while the trading volume for USD Coin pairs on centralized exchanges hit $135 billion, according to a July 31 study by CCData.

On July 1, regulators in the European Union certified Circle as the first stablecoin issuer under the Markets in Crypto-Assets (MiCA) regulatory framework.

Tether, on the other hand, had a slower growth rate but nonetheless managed to expand its market value to $114 billion for eleven consecutive months. July saw a 1.6% growth in Tether's market worth.

According to Cointelegraph, with a market share of roughly 70%, USDT continues to dominate the stablecoin industry, according to DefiLlama. Tether also announced record-breaking first-half 2024 profits of $5.2 billion on July 31.

In July, the market capitalization of stablecoins reached $164 billion, a level not seen since April 2022, a 2.1% gain. On the other hand, as of July 25, trading volume on controlled exchanges has decreased for four consecutive months, falling 8.4 percent to $795 billion.

In the days leading up to the June 30th rule change, numerous European cryptocurrency exchanges delisted stablecoins.

EU Base Required for Stablecoins

Issuers of stablecoins (asset-referenced, or ARTs) and e-money tokens, or EMTs, are now required to have a European Union base, inform the appropriate authorities, and request approval by submitting a white paper.

Stricter requirements, such as a daily transaction cap and the need that 60% of reserves be in cash deposits across multiple banks, may be imposed on large stablecoins.

CEO of Tether Comments on Banks

"Very few banks accept this type of business in Europe. It’s already very difficult to get just one!" Paolo Ardoino, CEO of Tether, made the observation in an interview that took place in May.