According to a report from CoinDesk on January 2, TradingView data shows that this week the market capitalization of USDT fell nearly 1.1% to $137.24 billion, marking the largest decline since the FTX exchange collapse in the second week of November 2022. In mid-December 2024, the market capitalization of USDT reached a record $140.72 billion. Previously, several exchanges located in the EU and Coinbase decided to delist USDT due to its non-compliance with the EU's Markets in Crypto-Assets (MiCA) regulations, which fully took effect on December 30. USDT serves as a gateway into the cryptocurrency market, widely used by investors to fund purchases of spot cryptocurrencies and derivative trading. Consequently, the delisting and the decline in market capitalization have sparked speculation on social media regarding an overall downturn in the cryptocurrency market. However, these concerns may be unfounded, as the negative impact can at most be limited to the Eurozone. Karen Tang, head of partnerships for Orderly Network in the Asia-Pacific region, stated, 'Due to MiCA regulations, the EU will restrict access to Tether, but this will not harm USDT's dominant position. The EU is not the largest cryptocurrency market. Most cryptocurrency trading volume occurs in Asia and the U.S. This will only hinder digital asset innovation in the EU.'
