According to CoinDesk, TradingView data shows that this week, the market capitalization of USDT fell by nearly 1.1% to $13.724 billion, marking the largest decline since the second week of November 2022 when the FTX exchange collapsed. In mid-December 2024, the market capitalization of USDT reached a record $14.072 billion.

Previously, several exchanges located in the European Union and Coinbase decided to delist USDT due to its non-compliance with the European Union's Markets in Crypto-Assets (MiCA) regulation, which fully takes effect on December 30. USDT serves as a gateway to the cryptocurrency market, widely used by investors to fund purchases of spot cryptocurrencies and derivatives trading. As a result, the delisting and market capitalization decline have sparked speculation on social media about an overall downturn in the cryptocurrency market. However, these concerns may be unfounded, and the negative impact may be limited to the Eurozone at most.

Karen Tang, head of partnerships for the Asia-Pacific region at Orderly Network, stated: "Due to MiCA regulation, the EU will restrict access to Tether, but this will not undermine USDT's dominance. The EU is not the largest cryptocurrency market. Most cryptocurrency trading volume occurs in Asia and the United States. All of this will only hinder digital asset innovation in the EU."