Stablecoin Market Cap Tops $200B for First Time as the Sector Logs 15th Consecutive Monthly Increase

The stablecoin market reached a new high in December 2024, crossing the $200 billion mark in total market capitalization for the first time

The total market capitalization of stablecoins reached a new high in December 2024, crossing the $200 billion mark for the first time, a 5.51% increase from the previous month. This growth reflects the expanding role of stablecoins in the digital asset ecosystem.

Despite the rise in stablecoin market capitalization, its dominance within the broader cryptocurrency market declined to 5.45%, the lowest level since March 2024. This shift may be attributed to the faster growth of other digital assets during the period.

One key development highlighted in CCData’s report was Tether’s decision to end support for Euro Tether (EURT) on December 15. The decision came amid the upcoming implementation of Europe’s Markets in Crypto-Assets (MiCA) regulations, which Tether stated it was unable to fully comply with.

Tether also cited the declining demand for EURT and the high maintenance costs as factors in its decision. As a result, EURT market capitalization dropped by 0.47% in December to $26.9 million, marking its thirteenth consecutive month of decline. This development underscores the challenges stablecoin issuers face in adapting to increasingly rigorous regulatory frameworks.

Another notable event covered in the report was a significant partnership between Circle, the issuer of USD Coin (USDC), and Binance, the world’s largest centralized exchange by trading volume.

Circle's collaboration with Binance aimed to expand USDC adoption by introducing more trading pairs and launching targeted promotions around the stablecoin. According to CCData, this strategic partnership contributed to a 6.7% increase in USDC’s market capitalization in December, bringing it to $42.4 billion—its highest level since December 2022.

CCData highlighted that such partnerships underscore the importance of collaboration in driving stablecoin growth, especially in the context of an evolving regulatory landscape.

In other regulatory news, Coinbase announced on December 13 that it would be restricting six stablecoins for its European users ahead of MiCA’s full implementation. The affected stablecoins were Tether (USDT), DAI (DAI), Binance USD (BUSD), Pax Dollar (PAX), TrueUSD (TUSD), and Gemini Dollar (GUSD).

This move by Coinbase was intended to ensure compliance with MiCA’s stablecoin regulations, which aim to safeguard investors and promote market integrity in the European Economic Area (EEA). CCData noted that the restriction applied to spot trading pairs involving the six stablecoins and the relevant cryptocurrencies.