USDT Loses Market Share: Centralised Exchange Share Drops 10% in 2024

IconCryptoNewsTerminal Staff12 Jul, 2024

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USDT Loses Market Share: Centralised Exchange Share Drops 10% in 2024

USDT's market dominance on centralized exchanges (CEXs) has diminished, dropping from 82% to 74% since the start of 2024. According to a report by Kaiko, the decline is attributed to the introduction of Binance's fee-free BUSD and the increased trading volume of USDC following the implementation of MiCA regulations in Europe. Despite a history of stablecoin de-peggings, USDT has maintained its market share due to its first-mover advantage. The MiCA regulations prioritize regulated stablecoins, which will likely shift the market landscape further away from non-compliant stablecoins, which currently account for 88% of trading volume. This regulatory shift will likely drive investors towards compliant stablecoins like BUSD and USDC, potentially further eroding USDT's market share.

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