The stablecoin market reaches a historic milestone

The stablecoin market has reached a historic milestone with a total capitalization that now exceeds $200 billion. Tether (USDT) remains the undisputed leader with $142.9 billion, while USD Coin (USDC) holds second place with $42.3 billion.

The total capitalization of the stablecoin market has just crossed a historic threshold, reaching a level that had never been seen before.

According to the latest data from CoinGecko, the stablecoin market now has a total capitalization of over $200 billion. This represents an increase of more than 100 billion dollars compared to the beginning of the year.

This growth is largely dominated by Tether’s USDT, which alone accounts for $142.9 billion of circulating assets. The stablecoin issued by Tether thus represents more than 70% of the entire stablecoin market.

Behind USDT, we find USD Coin (USDC), which continues to gain ground and now has a capitalization of $42.3 billion. Other major stablecoins include USDe with $6 billion, DAI with $4.5 billion, and FDUSD with $1.9 billion.

The exceptional growth of the stablecoin market can be explained in particular by the massive arrival of traditional investors in the crypto world, especially since the launch of Bitcoin ETFs in the United States. Stablecoins, which facilitate easy transitions from traditional currencies to cryptos, are naturally benefiting from this enthusiasm.

However, the upcoming entry into force of the MiCA regulation in Europe, scheduled for December 30, 2024, is largely redefining the landscape of stablecoins.

This framework imposes strict criteria, including electronic licenses and mandatory reserves, which forces issuers to adapt.

In response to these new constraints, Tether recently announced the halt of its euro stablecoin (EURT) in order to comply with the requirements.

This decision illustrates the growing challenges for stablecoin issuers in an increasingly strict regulatory environment.

To adapt to this new regulatory landscape, industry players are deploying new strategies.

Circle, which issues USDC, has notably formed a major partnership with Binance to strengthen its international presence.

Meanwhile, Tether is exploring the use of artificial intelligence on the blockchain for new use cases.

In contrast, in the United States, the arrival of Donald Trump and his visible support for cryptos are boosting investor enthusiasm.

This difference in approach between Europe and the USA could push some crypto companies to favor the American market, which is perceived as more welcoming.

Despite these changes, the record capitalization of the stablecoin market confirms their central role in the crypto ecosystem.

As Europe tightens its regulatory framework, the efforts of key players to innovate and adapt suggest a new phase of maturation for this rapidly evolving sector.