Stablecoins like Tether (USDT) have been a popular choice for many investors due to their stability and ease of use. However, recent data from Kaiko shows that USDT’s market share on centralized exchanges has been declining, dropping from 82% to 74% in 2024.
This decrease in market share can be attributed to the rise of competitors such as FDUSD, which has seen increased adoption thanks to promotions like zero-fee trading on platforms like Binance. Additionally, the demand for regulated stablecoins like USDC has been on the rise, with USDC reaching an all-time high market share of 12% by the end of June.
The implementation of the MiCA regulation in Europe has further fueled the demand for compliant stablecoins, with USDC emerging as a key player in this space. Non-compliant stablecoins currently make up the majority of the market volume, but this is expected to change as market makers shift towards compliant options.
In response to the regulatory changes, major exchanges like Binance and Kraken have started delisting non-compliant stablecoins for European users. This has led to a growing preference for transparent and regulated stablecoins, with USDC being the primary beneficiary of this shift in the market landscape.
Overall, the stablecoin market is evolving rapidly, with new players entering the space and regulatory changes driving demand for compliant options. Investors should keep an eye on these developments to ensure they are making informed decisions when it comes to choosing a stablecoin for their investment needs.