Tether’s USDt stablecoin has seen a 2.8% market cap decline since its peak of $141 billion on December 19, 2024. USDT trading volumes have also declined significantly, falling from $154 billion in mid-December to $55 billion on January 6, 2025.

Matrixport stated that this decline was due to the slowdown in transactions during the holiday season, and that it was premature to think that the market was entering a bear trend.

Analysts state that increasing stablecoin trading volumes usually indicate uptrends, but when they reverse, they could indicate a consolidation phase. While Tether’s market cap is falling, it is predicted that this could be due to the holiday season and that the market’s upward momentum could resume with the new year.

The claims that Tether will be delisted by the European Union’s Crypto Assets Regulation (MiCA) have not yet been confirmed by an official statement.