USDC and FDUSD outpace USDT growth and activity levels in post-MiCA trading
The post USDC and FDUSD outpace USDT growth and activity levels in post-MiCA trading appeared on BitcoinEthereumNews.com.
Historically, Tether’s USDT has dominated the cryptocurrency market as the primary source of crypto liquidity. However, data cited by on-chain tools have noticed an apparent shift in trader preferences as USDT loses some of its market grip to Circle’s USDC and Binance’s FDUSD. Tether’s closest competitor, Circle, has a lot of catching up to do on USDT. Its USDC stablecoin is still almost $100B behind the leader in the category. Then there’s FDUSD, the stablecoin that steps into the void left by BUSD’s collapse, which has also enjoyed rapid acceptance as a reliable USD-pegged stablecoin in high-volume BTC markets. Trading sentiments in a post-MiCA world In the past month alone, $USDC’s supply surged by $954M. The supply growth outpaced $USDT’s, which only grew by $792M over the same period. Analysts believe USDC may have gained an advantage thanks to the MiCA regulations, which have been in full effect across Europe since December 30, 2024. FDUSD is also having a great run, commanding an impressive 48% of the trading volume in BTC pairs on Binance. This is yet another trading sub-category where USDT has lost ground to another stablecoin as it was responsible for a 42% share in BTC trading. CryptoQuant analysts believe the growth in FDUSD trading activity highlights the token’s growing reputation as a stable, USD-pegged cryptocurrency. Crypto-asset service providers must obtain MiCA authorization to operate within the EU. FDUSD and USDC appear to be benefitting the most from the new regulations. On the other hand, the new regulations have brought a storm for USDT, which has been dropped by exchanges operating within the EU region. USDT has MiCA problems MiCA, which stands for Markets in Crypto-Assets (MiCA), is a regulation supported by a comprehensive framework established by the European Union to regulate cryptocurrencies, including stablecoins, to ensure financial…
Filed under: News - @ January 15, 2025 6:24 am