The stablecoin market reached a new high in December 2024, crossing the $200 billion mark in total market capitalization for the first time, according to the Decemeber 2024 edition of CCData’s Stablecoins & CBDCs Report.

This growth reflects the expanding role of stablecoins in the digital asset ecosystem, despite tightening regulatory pressures, particularly in Europe. These developments and others are detailed in CCData’s comprehensive monthly analysis of the sector.

CCData, a global leader in digital asset data and an FCA-authorized benchmark administrator, highlighted that the total market capitalization of stablecoins rose by 5.51% in December to $203 billion.

Source: CCData

This milestone marked the fifteenth consecutive monthly increase for the sector. Stablecoins are widely used for trading and transferring value, acting as a bridge between fiat currencies and digital assets. Despite the rise, stablecoin dominance within the broader cryptocurrency market declined to 5.45%, its lowest level since March 2024.

Tether’s decision to end support for Euro Tether (EURT) was another key development identified in CCData’s report. Tether cited the stringent compliance requirements of Europe’s new Markets in Crypto-Assets (MiCA) regulations and declining demand as reasons for its withdrawal. As CCData observed, EURT’s market capitalization dropped by 0.47% in December to $26.9 million, recording its thirteenth consecutive month of decline. This reflects the challenges stablecoin issuers face in adapting to increasingly rigorous regulatory frameworks.

CCData’s report also highlighted 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 aims 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 emphasized that such partnerships underscore the importance of collaboration in driving stablecoin growth amid an evolving regulatory environment.

Another significant regulatory development noted in CCData’s analysis was Coinbase’s decision to restrict six stablecoins for its European users on December 13, ahead of MiCA’s full implementation. The restricted stablecoins included Tether’s USDT, DAI, PYUSD, GUSD, GYEN, and PAX. CCData pointed out that this move underscores the growing importance of compliance in the stablecoin sector, as platforms like Coinbase align with MiCA’s stringent standards to maintain their European market presence.

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