The stablecoin market reached a brand new excessive in December 2024, crossing the $200 billion mark in complete market capitalization for the primary time, in response to the Decemeber 2024 version of CCData’s Stablecoins & CBDCs Report.
This development displays the increasing function of stablecoins within the digital asset ecosystem, regardless of tightening regulatory pressures, notably in Europe. These developments and others are detailed in CCData’s complete month-to-month evaluation of the sector.
CCData, a world chief in digital asset knowledge and an FCA-authorized benchmark administrator, highlighted that the full market capitalization of stablecoins rose by 5.51% in December to $203 billion.
This milestone marked the fifteenth consecutive month-to-month improve for the sector. Stablecoins are extensively used for buying and selling and transferring worth, performing as a bridge between fiat currencies and digital property. Regardless of the rise, stablecoin dominance throughout the broader cryptocurrency market declined to five.45%, its lowest degree since March 2024.
Tether’s determination to finish assist for Euro Tether (EURT) was one other key growth recognized in CCData’s report. Tether cited the stringent compliance necessities of Europe’s new Markets in Crypto-Belongings (MiCA) rules and declining demand as causes for its withdrawal. As CCData noticed, EURT’s market capitalization dropped by 0.47% in December to $26.9 million, recording its thirteenth consecutive month of decline. This displays the challenges stablecoin issuers face in adapting to more and more rigorous regulatory frameworks.
CCData’s report additionally highlighted a major partnership between Circle, the issuer of USD Coin (USDC), and Binance, the world’s largest centralized alternate by buying and selling quantity. Circle’s collaboration with Binance goals to increase USDC adoption by introducing extra buying and selling pairs and launching focused promotions across the stablecoin. In accordance with CCData, this strategic partnership contributed to a 6.7% improve in USDC’s market capitalization in December, bringing it to $42.4 billion—its highest degree since December 2022. CCData emphasised that such partnerships underscore the significance of collaboration in driving stablecoin development amid an evolving regulatory setting.
One other important regulatory growth famous in CCData’s evaluation was Coinbase’s determination to limit six stablecoins for its European customers on December 13, forward of MiCA’s full implementation. The restricted stablecoins included Tether’s USDT, DAI, PYUSD, GUSD, GYEN, and PAX. CCData identified that this transfer underscores the rising significance of compliance within the stablecoin sector, as platforms like Coinbase align with MiCA’s stringent requirements to take care of their European market presence.
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