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On 31 July 2024, CCData Research unveiled the July 2024 edition of its “Stablecoins & CBDCs” report, providing a comprehensive overview of recent trends and market dynamics within the stablecoins and central bank digital currencies (CBDCs) sectors.
CCData, authorized by the Financial Conduct Authority (FCA) as a benchmark administrator, is a prominent provider of institutional-grade digital asset data. By leveraging tick data from globally recognized exchanges and integrating multiple datasets, CCData delivers a comprehensive market overview, including trade, derivatives, order books, as well as historical, social, and blockchain data.
Stablecoins Market Capitalisation Hits $164 Billion
In July, the total market capitalisation of stablecoins saw a notable increase of 2.11%, reaching $164 billion. This marks the tenth consecutive monthly rise and the highest level since April 2022. The consistent growth in market capitalisation underscores a steady inflow of new capital into the stablecoins market, as evidenced by positive price movements in digital assets throughout the month.
European Stablecoins Market Continues to Decline
Conversely, the market capitalisation of European stablecoins experienced a decline of 1.43%, settling at $235 million. This represents the seventh consecutive monthly decrease for this sector. Specifically, two MiCA-compliant stablecoins, Monerium’s EUR eMoney and Membrane Finance’s EUROe, saw significant drops in their market capitalisations by 16.5% and 9.92%, respectively, to $14.3 million and $1.71 million.
Stablecoin Trading Volume Trends
Stablecoin trading volumes fell by 8.35% to $795 billion as of 25 July. Despite this decline, trading volumes are expected to trend higher, buoyed by the launch of spot Ethereum ETFs and positive industry sentiment highlighted at the recent Bitcoin Conference. Tether (USDT) remains the dominant force in stablecoin trading on centralised exchanges, commanding a 73.5% market share among the top ten stablecoins.
USD Coin (USDC) Sees Market Cap Increase
The market capitalisation of USD Coin (USDC) rose by 5.36% in July, reaching $33.6 billion. This marks the first increase in USDC’s end-of-month market capitalisation since April. Additionally, trading volumes for USDC pairs on centralised exchanges surged by 48.1% to $135 billion, a rise attributed to the stablecoin’s compliance with the Markets in Crypto-Assets (MiCA) regulations that took effect in Europe late last month.
CBDCs Overview: Key Events in July 2024
- July 5: The European Central Bank (ECB) released a report outlining the design options for a potential digital euro. The report emphasized the need for privacy, resilience, and inclusivity in preparing the digital currency’s framework.
- July 10: The People’s Bank of China (PBOC) expanded its digital yuan pilot program to several additional cities, aiming to increase the user base and test new features related to cross-border payments.
- July 15: The Hong Kong Monetary Authority (HKMA) announced a new regulatory framework for CBDCs, focusing on security, privacy, and interoperability, aimed at preparing the financial system for digital currency integration.
- July 20: In a speech at the Bitcoin 2024 conference, former U.S. President Donald Trump criticized the idea of a government-controlled digital currency, advocating for a private sector-led approach instead.
- 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, testing the system’s scalability and user experience under real-world conditions.