Outside Source
The market capitalization of stablecoins increased by 2.1% to $164 billion in July, the highest level since April 2022.
News
Own this piece of crypto history
Circle’s stablecoin trading volume spiked in July thanks to a surge in market inflows and new European rules for digital assets.
According to a July 31 report by CCData, the trading volume for USD Coin (USDC) pairs on centralized exchanges reached $135 billion as of July 25, while its market capitalization rose 5.4% to $33.6 billion.
With the implementation of the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework, Circle became the first stablecoin issuer to be approved by regulators in the region on July 1.
During the same period, Tether (USDT) grew at a slower rate but still posted a record 11 consecutive monthly market capitalization increases to $114 billion. Tether’s market cap increased by 1.6% in July.
According to DefiLlama, USDT retains the largest market share of any stablecoin at nearly 70%. In addition, on July 31, Tether reported record profits of $5.2 billion in the first half of 2024.
The stablecoins’ market capitalization saw a 2.1% increase during the month of July, reaching $164 billion and the highest level since April 2022. Trading volume on centralized exchanges, however, has shrunk by 8.4% to $795 billion as of July 25, marking the fourth consecutive month of decline.
EU exchanges delist stablecoins
Several crypto exchanges in Europe delisted stablecoins ahead of the implementation of new rules on June 30.
Under the new rules, issuers of stablecoins (asset-referenced, ARTs, and e-money tokens, EMTs) must be based in the European Union, notify the relevant authorities and submit a white paper for approval. Large stablecoins may be subject to stricter regulations, such as a cap on daily transactions and requiring that 60% of reserves in cash deposits across several banks.
“Very few banks accept this type of business in Europe. It’s already very difficult to get just one!” Tether CEO Paolo Ardoino noted in a May interview.
Magazine: Best and worst countries for crypto taxes — plus crypto tax tips
This article first appeared at Cointelegraph.com News
