Circle’s USDC Stablecoin Experiences Highest Demand Among Regulated Stablecoins

Kaiko's recent report highlights that after Circle announced that its USDC and EURC stablecoins would comply with European Markets in Crypto

Stablecoin volumes have largely favored non-compliant coins over the past year, yet recent events and upcoming regulatory changes are shifting the landscape.

According to Kaiko data, Circle's USDC (USD Coin) has seen the highest demand among regulated stablecoins.

Kaiko's recent report highlights that following Circle's announcement that its USDC and EURC stablecoins will comply with European Markets in Crypto-assets Regulation (MICA), both stablecoins have seen significant volume increases.

While non-compliant stablecoins still dominate the market, comprising 88% of the total stablecoin volume, there is a noticeable shift towards regulated products. This shift could be driven by a growing preference for transparency in the market.

Moreover, as major crypto exchanges like Binance, Bitstamp, Kraken, and OKX begin restricting or delisting non-compliant stablecoins for their European users, exchanges and market makers may begin favoring compliant stablecoins.

In the past year, the volume share of compliant stablecoins has risen, reflecting this increased demand for regulated alternatives. So far, this trend has mainly benefited USDC.

Another contributing factor to USDC's growth is its rising use in perpetual futures settlement, even though its market share in this domain is still much smaller compared to Tether's USDT (Tether).