Coinfeeds Daily → USDC Weekly Volume Jumps 155% in 2024 Following MiCA Implementation

USDC Weekly Volume Jumps 155% in 2024 Following MiCA Implementation

Published: Jul 10, 2024 | Last Updated: Jul 10, 2024
Howard Kane

New European regulation drives USDC's weekly trading volume to $23 billion and market share to over 90% on centralized exchanges.

The cryptocurrency market has seen a significant shift following the implementation of the European Markets in Crypto-assets Regulation (MiCA). This new regulation has had a profound impact on the trading volume and market share of Circle's USD Coin (USDC).

Impact of MiCA on USDC Trading Volume

Since MiCA came into effect in 2024, USDC's weekly trading volume has soared to $23 billion. This marks a 155% increase from $9 billion in 2023 and a substantial rise from $5 billion in 2022. The regulation has introduced stringent standards for stablecoin issuers, including requirements for whitepaper publication, governance, reserves management, and prudential practices.

Increased Market Share on Centralized Exchanges

As a result of these regulatory changes, USDC has seen a significant increase in its market share on centralized exchanges (CEXs). Before the implementation of MiCA, USDC held a 60% market share. However, after Binance re-listed USDC in March 2023, its market share surged to over 90%. This indicates a strong market preference for regulated stablecoin alternatives.

Why MiCA Matters

MiCA aims to create a safer and more transparent environment for cryptocurrency trading in Europe. By enforcing compliance with high standards, the regulation seeks to protect investors and ensure the stability of the financial system. The success of USDC under MiCA demonstrates the potential benefits of regulatory frameworks in fostering trust and growth in the crypto market.

Practical Takeaways

For investors and traders, the rise of USDC under MiCA highlights the importance of regulatory compliance in the cryptocurrency space. Choosing regulated stablecoins can offer greater security and stability. For issuers, adhering to regulatory standards can lead to increased demand and market share, as evidenced by USDC's performance.

In conclusion, the implementation of MiCA has significantly boosted USDC's trading volume and market share, underscoring the positive impact of regulation on the cryptocurrency market. As the industry continues to evolve, regulatory frameworks like MiCA will likely play a crucial role in shaping its future.

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