CCData Research Reveals Insights into Stablecoins & CBDCs
On 31 July 2024, CCData Research presented its latest report on “Stablecoins & CBDCs,” offering an in-depth analysis of the current trends and dynamics within the stablecoins and central bank digital currencies (CBDCs) sectors.
CCData, authorized by the Financial Conduct Authority (FCA) as a benchmark administrator, is known for providing high-quality digital asset data for institutions. By utilizing tick data from various global exchanges and combining multiple datasets, CCData offers a comprehensive market overview, including trade, derivatives, order books, and historical, social, and blockchain data.
Stablecoins Market Capitalization Reaches $164 Billion
During July, the total market capitalization of stablecoins experienced a significant rise of 2.11%, reaching a total of $164 billion. This milestone marks the tenth consecutive month of growth and represents the highest level recorded since April 2022. The continual increase in market capitalization signifies a steady influx of new capital into the stablecoins market, reflected in positive price movements across various digital assets throughout the month.
Decline in European Stablecoins Market
In contrast, the European stablecoins market witnessed a decline in market capitalization by 1.43% to $235 million. This marks the seventh consecutive month of decreased market capitalization within this sector. Notably, two MiCA-compliant stablecoins, Monerium’s EUR eMoney and Membrane Finance’s EUROe, experienced significant drops in their market capitalizations by 16.5% and 9.92%, respectively, reaching $14.3 million and $1.71 million.
Trends in Stablecoin Trading Volume
The trading volumes of stablecoins saw a decline of 8.35% to $795 billion by 25 July. Despite this decrease, trading volumes are anticipated to rise in the future, driven by the introduction of spot Ethereum ETFs and positive industry sentiment highlighted at the recent Bitcoin Conference. Tether (USDT) remains the dominant player in stablecoin trading on centralized exchanges, commanding a 73.5% market share among the top ten stablecoins.
USD Coin (USDC) Market Cap Growth
July saw a 5.36% increase in the market capitalization of USD Coin (USDC), reaching $33.6 billion. This growth signifies the first rise in USDC’s end-of-month market capitalization since April. Additionally, the trading volumes for USDC pairs on centralized exchanges surged by 48.1% to $135 billion, attributed to the stablecoin’s compliance with the Markets in Crypto-Assets (MiCA) regulations implemented in Europe at the end of the month.
Key Events in CBDCs Landscape in July 2024
- July 5: The European Central Bank (ECB) released a report detailing design options for a potential digital euro, highlighting the importance of privacy, resilience, and inclusivity in the currency’s framework.
- July 10: The People’s Bank of China (PBOC) expanded its digital yuan pilot program to several additional cities to enhance the user base and test new features related to cross-border payments.
- July 15: The Hong Kong Monetary Authority (HKMA) introduced a new regulatory framework for CBDCs focusing on security, privacy, and interoperability to prepare the financial system for digital currency integration.
- July 20: Former U.S. President Donald Trump criticized the concept of a government-controlled digital currency, advocating for a private sector-led approach during a speech at the Bitcoin 2024 conference.
- July 22: The Bank of England (BoE) published a consultation paper exploring the potential economic and financial implications of introducing a digital pound, seeking feedback from industry stakeholders and the public.
- July 28: The Reserve Bank of India (RBI) conducted a public trial of its CBDC in select cities to test the system’s scalability and user experience under real-world conditions.
Hot Take: Stay Updated on Stablecoins and CBDCs Trends!
Understanding the latest trends and developments in stablecoins and central bank digital currencies (CBDCs) is essential for staying informed and making informed decisions in the crypto market. Keep an eye on market capitalization, trading volumes, and regulatory updates to navigate this evolving landscape effectively. Stay connected with reputable sources like CCData Research to access valuable insights into the world of digital assets. Stay informed, stay ahead!
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