The market capitalization of USDT has fallen by 1.2%. In the wake of the FTX cryptocurrency exchange collapse, the market capitalization of USDT fell by 5.7%.

The decline this week followed the implementation of the EU's Markets in Crypto-Assets (MiCA) regulations on December 30, as well as the decision by several exchanges to delist USDT due to regulatory issues.

The new regulation requires all stablecoin issuers to obtain special licenses to operate in the European Union.

Experts from Orderly Network believe that the impact of MiCA on USDT will be geographically limited and will not harm the global dominance of the stablecoin. For example, MiCA regulations restrict the use of stablecoins on centralized exchanges in the EU, but traders can still hold USDT in non-custodial wallets.

Analysts at Bitblaze share this view, noting that over 80% of USDT trading volume is concentrated in Asia, where the stablecoin market remains resilient, and USDT plays an important role as a liquid asset and trading tool.