Markets
MiCA Regulations Have Mainly Benefited USDC, Says Kaiko
As Europe prepares for the implementation of MiCA regulations, demand for compliant stablecoins has primarily benefited just one company, data shows.
Regulation of European cryptoasset markets (Mica), aimed at regulating the cryptocurrency market and specifically targeting stablecoins, has sparked a race among issuers to comply. However, despite the apparent competition, only one stablecoin company has benefited from the strict regulations so far — Circle.
According to data from French blockchain analytics firm Kaiko, Circle’s euro-pegged stablecoin (EURC) and its better-known USD Coin (USDC) experienced the most significant increases in daily trading volumes following the implementation of MiCA.
MiCA-compatible stablecoins | Source: Kaiko
Société Générale, which has also developed its own stablecoin called Euro Convertible (EURCV), after raising its dubious restrictionshas also seen an increase in volume, Kaiko says, noting however that it remained modest at $4,000, likely due to its availability only on Bitstamp.
“[…] the share of supported stablecoins has increased over the past year, suggesting a greater demand for transparent and regulated alternatives. So far, this trend has primarily benefited USDC.”
Kaiko
Currently, non-compliant stablecoins dominate the market, “accounting for 88% of total stablecoin volume,” the Paris-based firm says, adding that MiCA “could change this balance as exchanges and market makers favor compliant stablecoins over non-compliant alternatives.”
Major cryptocurrency exchanges such as Binance, Bitstamp, Kraken and OKX have already started delisting non-compliant stablecoins from their European clients.
USDC weekly market share volume | Source: Kaiko
In 2024, USDC’s weekly trading volume rose to $23 billion, up from $9 billion in 2023 and $5 billion in 2022, bringing USDC’s market share to a record high, which Kaiko attributes to its growing use on decentralized exchanges (DEXs) and centralized exchanges (CEXs).
Another factor driving USDC’s growth is its increasing use for perpetual futures settlement, the company says, noting that Bitcoin’s share (BTC) USDC-denominated perpetuals traded on Binance and Bybit rose from 0.3% to 3.6% in just six months. Additionally, the use of USDC on Ethereum (ETH) perpetuals trading also grew, with ETH-USDC trading volume rising to over 6.8% from 1% at the start of the year.
In early July, Circle announced that it had become the first stablecoin company to achieve compliance with MiCA policies. Meanwhile, speculation emerged on the future of Tether in Europe after platforms like Bitstamp delisted its euro-denominated offering, Tether EURT. Additionally, European cryptocurrency trading platform Uphold ceased support for USDT and several other dollar-pegged stablecoins.