MiCA bans Tether USDT in Europe and reshapes the stablecoin landscape. This European Union crypto law will have a major impact on the cryptocurrency market. It is changing the market share and trading volume of stablecoins.
Let’s take a look at these situations to better understand them. Scroll down for more helpful information from the Kaiko research team.
Also read: How to become a millionaire if SHIB hits $0.00075 and $0.0075
Analyzing the impact of MiCA’s stablecoin regulations on the virtual currency market
MiCA-compliant EUR stablecoin rises
MiCA-compliant EUR stablecoins currently hold 67% market share, which is a significant share. At the time of writing this guide, Circle’s EURC and Société Générale’s EURCV are leading this growth. Coinbase topped the EUR-stablecoin market in August, which means Binance has fallen behind.
Changes in the USD stablecoin market
USDC, the largest MiCA-compliant USD stablecoin, has increased its market share from 10% to 12%. Coinbase’s plan to delist USDT for European users could further strengthen the regulated USD stablecoin.
Also read: Ethereum rises 6.9%: Will ETH reach $2,800 this week?
Decentralized exchanges feel the impact
MiCA rules could impact the dominance of stablecoins on decentralized exchanges (DEXs). DEXs are not regulated by MiCA, so USDT trading is still possible. This could attract traders looking for liquidity.
Crypto.com takes on the SEC
Crypto.com has sued the SEC, disputing claims that some of its cryptocurrencies are securities. The lawsuit comes as Crypto.com gains market share in BTC trading.
Market volatility concerns
Europe’s Tether USDT ban raises volatility and liquidity concerns. The depth of the US exchange Bitcoin market has fluctuated. After Cumberland’s accusations were announced, Coinbase’s 2% BTC depth fell by 46%.
Regional trading patterns
USDT-USD trading volume peaks during APAC hours. This suggests that Asia-based traders are increasingly exchanging cryptocurrencies for fiat currencies.
Also read: XRP expected to rise: Analysts predict $0.75 soon
The introduction of MiCA and the banning of Tether USDT in Europe has reshaped the stablecoin market. Cryptocurrency participants are currently adapting to new regulations and changing trading patterns.
