USDC and FDUSD Rise Amid MiCA Competing with Tether

Munataha Nadeem
4 Min Read

The USDT token from Tether has been the most liquid cryptocurrency for quite some time. Circle and Binance are seeing USDC and FDUSD gain ground at the expense of USDT. In turn, on-chain techniques have detected a shift in trade preferences. Circle, Tether’s primary competitor, is trailing behind USDT. The USDC stablecoin remains almost $100 billion behind the current market leader.

After MiCA, USDC and FDUSD Grow

In the past month alone, the supply of USDC increased by $954 million. Upcoming cryptocurrency supply increased at a quicker rate than $USDT, which only increased by $792M during the same period. Analysts have observed… The MiCA law, which entered into effect throughout Europe on December 30, 2024, may have benefited USDC. Furthermore, FDUSD is doing quite well, making up 48% of Binance’s trading volume in BTC pairs. USDC and FDUSD Rise, Another stablecoin in this trading sub-category has gained ground on USDC because USDT controlled 42% of BTC trading. A rise in trading activity. Being tied to the US dollar, FDUSD demonstrates that the token is gaining credibility as a trustworthy cryptocurrency.

Tether’s Shift to El Salvador

Markets in Crypto-Assets (MiCA). A comprehensive EU framework to govern cryptocurrencies, including stablecoins, for financial stability and consumer safety. ESMA and EBA monitor MiCA compliance.MiCA was suggested in 2020 and gradually implemented, but compliance was necessary by 2024. MiCA aims to replace fragmented national legislation with a unified EU-wide framework for all European stablecoin issuers. Company changes are apparent at Tether. Registration in El Salvador was announced on Monday.

It was also announced that the corporation would migrate. Tether has expanded operations to El Salvador, marking a strategic move in the crypto-friendly nation. Known for adopting Bitcoin as legal tender, El Salvador welcomes Tether’s stablecoin expertise to enhance financial inclusion, promote blockchain innovation, and support economic growth, solidifying its position as a global leader in cryptocurrency adoption.

MiCA Regulation and Tether’s Move

The EU’s Markets in Crypto-Assets (MiCA) framework regulates stablecoins and other cryptocurrencies to protect investors and consumers. The EBA and ESMA enforce USDC MiCA. Even though MiCA was implemented gradually in 2020, full compliance was required by 2024. Mica replaces fragmented national legislation with a unifying EU framework that affects all European stablecoin issuers. Tether appears to be reorganizing.

MiCA Regulation and Tether's Move

The MiCA regulation’s clear framework for cryptocurrencies has spurred Tether’s move to adapt and expand globally. USDC and FDUSD Rise, By ensuring compliance, Tether leverages MiCA’s guidelines to strengthen its operations in Europe and beyond, fostering trust, promoting transparency, and aligning with evolving regulatory standards for stablecoins and digital asset innovation.

Summary

USDT has long led cryptocurrency liquidity, but USDC and FDUSD are catching up. Alcoin News reported $954 million in USDC supply growth and $792 million in USDT supply growth last month. However, Analysts attribute UDC’s popularity to Europe’s full MiCA implementation. In Binance, FDUSD now accounts for 48% of BTC trade pairings, surpassing USDT’s 42%. Due to regulatory developments, Tether moved from the British Virgin Islands to crypto-friendly El Salvador.USDC On December 30, 2024, MiCA’s efforts to standardize cryptocurrency legislation applied to all EU stablecoin issuers.

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