Tether (USDT) Faces Biggest Drop Since FTX Amid MiCA Pressure
- USDT records 1,1% drop due to MiCA.
- MiCA pushes USDC as an alternative in the European market.
- Limited Impact: Asia Leads USDT Trading Volume.
The stablecoin market was rocked this week with Tether (USDT), the leading dollar-pegged cryptocurrency, recording its biggest weekly market cap drop since the collapse of the FTX exchange in November 2022. Data shows that USDT's market cap fell 1,1% to $137,24 billion, after peaking at $140,72 billion in December.
4/
But Axel, what about USDT trading volume and the depeg?
USDT is the largest stablecoin, with a market cap of $138.5B and a daily trading volume of $44B
As of today, 80% of USDT's trading volume comes from Asia, so the EU delisting won't have any severe impact. pic.twitter.com/NjxB2iVLhe
— Axel Bitblaze 🪓 (@Axel_bitblaze69) December 29, 2024
This significant reduction comes in line with the full implementation of Europe’s Markets in Crypto Assets (MiCA) regulation, which came into effect on Dec. 30. The new regulation requires issuers of stablecoins like USDT to obtain specific licenses to operate within the European Union. Some exchanges, including Coinbase, have opted to remove USDT from their platforms, citing compliance concerns.
While regulations restrict the use of stablecoins on centralized exchanges in the European bloc, traders can still hold USDT in non-custodial wallets. However, the asset’s delisting from trading platforms has sparked speculation on social media about the broader impact on the cryptocurrency market.
However, experts believe that MiCA’s impact on USDT will be limited geographically. “USDT’s delisting due to MiCA regulation will not harm its dominance,” said Karen Tang, head of partnerships at Orderly Network. According to her, USDT’s largest trading volume occurs in Asia and the United States, reducing Europe’s relevance in this context.
Analysts like Bitblaze reinforce this view, noting that 80% of USDT’s trading volume is generated in Asia. Furthermore, the global stablecoin market remains robust, with USDT playing a crucial role as a liquidity medium and trading tool.
Meanwhile, the USDC stablecoin, issued by Circle, benefits from the restrictions imposed on USDT. Thanks to its compliance with MiCA regulations, USDC has seen its market cap increase by $1,7 billion in recent weeks, in contrast to its competitor’s decline. However, USDT remains the leader in the stablecoin market, with a market cap of $137,3 billion, while USDC ranks second with $43,7 billion.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Florida teens arrested in connection with a kidnapping and theft of $4M in crypto
Share link:In this post: Three Florida teens have been accused of kidnapping a man at gunpoint and forcing him to transfer $4 million worth of digital assets to them. The teens kidnapped the victim from Las Vegas and threatened to kill him and his father if he didn’t cooperate. Law enforcement agencies across the globe are now warning individuals with substantial crypto holdings to be cautious amid a rise in kidnappings.
UK icons slam AI ‘theft’ in fiery plea to Starmer before key vote
Share link:In this post: Over 400 UK artists urged PM, Keir Starmer, to strengthen copyright laws ahead of an AI legislation vote. UK government’s proposed “opt-out” rule for AI training on copyrighted content faces strong backlash. Hayao Miyazaki and others condemn AI-generated art, fueling copyright debates and legal challenges.
Americans have wiped out $3 trillion in savings in the past 3 years, mostly from stimulus checks
Share link:In this post: Americans have drained $3 trillion in savings since 2021, with excess savings now at negative $900 billion. The US savings rate dropped to 3.9% in March, below pre-pandemic levels of 5-6%. Consumer spending rose 0.7% in March, but GDP still shrank by 0.3% due to soaring imports.

Banking the unbanked, but this time for real?
Trending news
MoreCrypto prices
More








