Thethirdquarterof2024sawasurgeinstablecoinuseandadoption,accordingtoCoinbase’s4thQuarterGuidetoCryptoMarketsreportwithGlassnode.
Stablecoinshitanall-timehighmarketcapitalizationofnearly$170billioninQ32024,accordingtothereport.ThisgrowthoccurredalongsidetheimplementationoftheEuropeanUnion’snewMarketsinCrypto-Assetsregulation,whichintroducedclearerrulesforstablecoinoperations.
Stablecoinshavebecomeakeytoolforusersseekingfaster,cheaper,andmoresecuretransactions.Theirutilityinpaymentsystems,includingremittancesandcross-bordertransfers,hascontinuedtoexpand.
Recently,AnthonyPomplianoarguedthattechinnovationsoutsideofcryptocouldleadtoanewerainwhichstablecoinsbecometheprimarytransactionmediuminamachine-driveneconomy.Thisincreasedadoptionreflectsthegrowingroleofstablecoinsincryptotradingandreal-worldfinancialsystems.
Accordingtothereport,stablecoinvolumeshavereachednearly$20trillionyear-to-dateasofthethirdquarter,indicatingtheirgrowingroleintheglobaleconomy.
Source:CoinbaseandGlassdoor
StablecoinandBitcoindominance
StablecoindominancealsoincreasedinQ3alongsideBitcoin(BTC),withcryptoinvestorsgravitatingtowardwhattheyseeasthehighest-qualitydigitalassets.
ThecurrentBTCcyclecloselytracksthe2015-2018and2018-2022cycles,whichendedwithnearly2,000%and600%returns,accordingtothereport.
Source:CoinbaseandGlassdoor
Youmightalsolike:PaxoslaunchesstablecoinpaymentsplatformwithStripeasfirstcustomer
WhatisMiCA?
TheMarketsinCrypto-AssetsRegulationisacomprehensiveframeworkenactedbytheEuropeanUnioninJune2023toregulatethecryptoindustryacrossits27membercountries.Itinitiatesa12-18monthtransitionperiodforimplementingrulesonanti-moneylaundering,combatingthefinancingofterrorismanddigitalassetcustody,amongothers.
MiCA’simpactonstablecoinsstillremainstobeseen,butTether(USDT)CEOPaoloArdoinoexpressedconcernthatMiCA’s60%cashreserverequirementforstablecoinscouldcreatesystemicrisksforEuropeanbanks.Hearguedthatsuchregulationsmightexacerbateliquidityissuesduringlarge-scaleredemptions,potentiallyleadingtobankfailures.
crypto.news