The stablecoin market value reached its maximum level at $224 billion as USDT combined with USDC led this market expansion.
The stablecoin market data from CoinMarketCap reveals USDC as the dominate player since investors choose it above all other available options. From August 2023 until today, market capitalization increased by 84%, establishing a new record of $121.18 billion. The market capitalization experienced a 0.14% upward change throughout the past day, and trading volume expanded by 16% to achieve $112 billion.
USDT and USDC lead stablecoin growth
USDT and USDC gained dominance as main stablecoins because their adoption rates surpassed those of alternative digital assets in 2023. The market capitalization of USDT constitutes the largest stablecoin value, exceeding $139 billion. USDC holds greater significance in financial markets as investors prefer it over competing stable assets to secure their altcoins.
Alphractal reports that the rising popularity of USDC stems from declining altcoin prices because investors now prefer stablecoins for asset maintenance. USDT currently dominates the cryptocurrency sector yet market shifts might cause price changes and additional peaks.
USDC nears $55 Billion market cap
The market value of USDC reached $53.33 billion in January 2024 while starting from $24.1 billion on November 14, 2023. This represents a 120% increase. At the January 31 reporting date, USDC maintained a 24.6% share in the market sector.
Trading volume fell down by $11.145 billion since January 18 reaching $8.855 billion. During the same period the circulation of USDC expanded significantly as it grew by 78% compared to last year. The minting operation of Circle produced 3.4 billion USDC while removing 2.3 billion USDC during a one-week period thus creating 1.2 billion new USDC supply.
Regulatory Impact on USDT and USDC in Europe
Despite the intense market performance, USDT and USDC face regulatory challenges in Europe. Crypto.com declared the termination of USDT and USDC stablecoins in addition to WBTC and three additional digital assets PAX, PAXG and PYUSD.
The companyCrypto.com made a decision to eliminate support for USDT and USDC stablecoins as well as WBTC and three more digital assets: Pax Dollar (PAX) as well as Pax Gold (PAXG and PayPal USD (PYUSD) when Europe started implementing Markets in Crypto-Assets (MiCA) regulatory framework. Users can withdraw through this platform until the termination of the first quarter of 2025 despite purchase token restrictions. The regulatory change will impact how stablecoins are used and distributed within European marketplaces.