Circle USDC stablecoin market cap has hit a brand new all-time excessive, surpassing $60 billion for the primary time.
Artemis Analytics information exhibits USDC now has a 25.4% share of the stablecoin market, in contrast with 20.7% three months in the past.
However the digital greenback, which is issued by Circle, stays streets behind Tether. The whole worth of USDT at the moment stands at $144 billion—representing about 63% of this still-nascent sector.
All of this comes in opposition to a backdrop of rising demand for stablecoins, to not point out important regulatory shifts.
New USDC value about $16.5 billion was minted over the previous three months, in contrast with the $4.7 billion of USDT that entered circulation.
The arrival of Europe's MiCA rules, which totally got here into power on Dec. 31 final 12 months, are an enormous issue right here.
USDC had turn into the primary stablecoin to realize full compliance with these new requirements, with Circle choosing France as its European headquarters.
Alternatively, Tether has been delisted by a flurry of exchanges throughout the EU as a result of it doesn't have an e-money license on the continent.
Coinbase Europe was among the many first to take away USDT from its platform again in December, with Binance following swimsuit earlier this month.
A report not too long ago shared with Decrypt by Circle revealed that USDC circulation additionally grew by 78% over the course of 2024.
Tether's standing within the stablecoin market might be weakened additional because the GENIUS Act winds its means by way of Congress within the U.S. The invoice affords clear provisions addressing every little thing from reserve necessities to audits—each areas the place Tether has confronted criticism previously.
However simply this previous week, Tether is in talks with a Large 4 accounting agency—PwC, EY, Deloitte or KPMG—to get independently audited, based on a report on Friday by Reuters.
Regulators and lawmakers alike have beforehand raised questions on whether or not USDT is backed by U.S. {dollars}, with JPMorgan claiming Tether may have to dump the Bitcoin it holds in reserve to realize compliance.
That led to a swift rebuke from a Tether spokesperson, who informed Decrypt final month that adapting to any new necessities can be "simple."
Edited by Stacy Elliott.
