USDC\'s Market Share Surges to a Record High as Regulated Stablecoins Gain Traction

The crypto market has experienced increased regulation and scrutiny, with altcoins such as Ripple [XRP], Uniswap [UNI], and Monero [XMR] facing legal

USD Coin (USDC) has seen a massive surge in trading volume this year, largely due to increased demand for legally accepted stablecoins among major traders.

According to a recent report by Kaiko, USDC's market share has also reached a record high, nearing 14% of total fully decentralized stablecoin (FDUSD) market share.

Several key market factors are driving USDC's trading volume and market share surge.

As per the report, the rise of centralized exchanges (CEXes) is playing a central role in boosting USDC volume.

Kaiko's analysis reveals that USDC's market share on CEXes experienced a significant surge from March 2023, rising from 60% to 90%.

Moreover, perpetual futures settlements are also contributing to the increasing trading volume.

Kaiko's data shows that Bitcoin (BTC) perpetuals in USDC rose to 3.6% from 0.3%, while Ethereum (ETH) perpetuals increased to 6.8%.

This increased use of perpetual settlements in USDC highlights the changing sentiment among investors towards regulated stablecoins.

On June 30, Circle announced its full compliance with the Markets in Crypto-Assets (MiCA) regulation in Europe, marking a critical juncture in the continent's stablecoin market.

After Circle's announcement, other firms, such as SocGen's Forge, which primarily issues EURO convertibles, also highlighted their stablecoin plans.

Forge is set to issue fully regulated stablecoins, specifically EURO convertibles, within the MiCA framework.

As part of the MiCA compliance, stablecoin issuers are required to obtain a license from the European Securities and Markets Authority (ESMA) to operate within the region.

These licenses come with specific requirements, including the publication of a whitepaper, outlining the stablecoin's governance, reserve management, and prudential standards.

After Circle's announcement, trading volume data showed a clear preference for EURC and USDC, which experienced the highest trading volume on daily charts.

SocGen's EURO convertibles also saw a rise in trading volume.

The surge in trading volume indicated that MiCA compliance played a critical role in boosting USDC's demand.

This development essentially provides a framework for institutional investors and other large players to operate within, adhering to their requirements for derivatives markets.

As a result, we can expect to see a further surge in USDC demand and trading volume in the coming months.

While the presence of smaller, unregulated stablecoins still dominates the market, the future seems bright for regulated stablecoins like USDC, especially as major exchange platforms like Binance (BNB), OKX, Kraken, and Bitstamp continue to restrict and even delist the smaller stablecoins.

The above is the detailed content of USDC\'s Market Share Surges to a Record High as Regulated Stablecoins Gain Traction. For more information, please follow other related articles on the PHP Chinese website!