tl;dr
According to a report by crypto intelligence firm Kaiko, Circle's USDC and EURC stablecoins have seen increased demand following compliance with European regulations. Non-compliant stablecoins still dominate the market, accounting for 88% of total volume, but regulated products have seen a rise in v...
USDC, Circle's flagship stablecoin, has experienced increased demand and volume after complying with European regulations. This suggests a shift towards transparency and regulation in the stablecoin market. Regulated stablecoins, particularly USDC, are gaining traction as exchanges favor compliant options, leading to a rise in demand for transparency and regulated alternatives. While non-compliant stablecoins still dominate the market, regulated products have seen an increase in volume, potentially due to a preference for transparency. Major exchanges like Binance, Bitstamp, Kraken, and OKX have restricted non-compliant stablecoins for European customers, further favoring compliant alternatives.
USDC's growth can also be attributed to its increased usage in perpetual futures settlement, although it still lags behind Tether's USDT. The share of BTC perpetuals denominated in USDC has risen to 3.6% from 0.3% in January, and its usage in ETH perpetuals trading has increased to over 6.8% from 1% at the beginning of the year. This indicates changing investor preferences amid the implementation of stablecoin regulations.
Boston-based payments firm Circle’s USDC and EURC stablecoins have seen increased demand following compliance with European regulations, with USDC currently experiencing the most demand among regulated stablecoins. Non-compliant stablecoins still dominate the market, accounting for 88% of total stablecoin volume, but regulated products have seen a rise in volume, potentially due to an appetite for transparency. Major exchanges and market makers are favoring compliant stablecoins over non-compliant alternatives, with some imposing restrictions on non-compliant stablecoins for European customers. USDC's usage for perpetual futures settlement has also surged, although it remains small compared to Tether's USDT. Despite this, its growing usage for perpetual settlement reflects changing investor preferences in response to stablecoin regulations.