Circle's stablecoin trading volume rose in July, thanks to a surge in market inflows and Europe's new rules for digital assets.

According to CCData's July 31 report, the trading volume of USD Coin (USDC) pairs on central exchanges reached $135 billion as of July 25, and the market value increased by 5.4% to $33.6 billion. With the implementation of the European Union's CryptoAsset Markets (MiCA) regulatory framework, Circle became the first stablecoin issuer approved in the region on July 1.

During the same period, Tether (USDT) showed slower growth, but increased its market value for 11 consecutive months, reaching $114 billion. Tether's market value increased by 1.6% in July. According to DefiLlama, USDT remains the largest stablecoin with almost 70% market share. Additionally, Tether reported record profits of $5.2 billion in the first half of 2024.

The market value of stablecoins increased by 2.1% in July, reaching $164 billion, the highest level since April 2022. However, trading volume on central exchanges decreased by 8.4% to $795 billion as of July 25, marking the fourth consecutive monthly decline.

Some crypto exchanges in Europe have delisted stablecoins ahead of new rules coming into force on June 30. Under the new rules, stablecoin issuers must be based in the European Union, notify relevant authorities and submit a white paper for approval. Large stablecoins may be subject to stricter regulations, such as a daily transaction limit and 60% of reserves being held as cash deposits at various banks.

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