The global stablecoin market has recently hit a milestone achievement as the number of transactions in the July month hit $1.79 trillion, a record figure to date. It is 63% higher than what was recorded in May, when it amounted to $1.1 trillion, and 125% more than for the corresponding period last year, reflecting the increased relevance of stablecoins in the digital payments sector.

According to the most recent data, stablecoins have been growing in popularity although the general relevance of the cryptocurrency sector has been coming under pressure. As their applications in payments, DeFi, and cross-border remittances grow, they are increasingly becoming a staple of the crypto sector.

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USDC Dominates Stablecoin Transaction Volume

Since then, while USDT remains the world’s biggest stablecoin by market capitalization, USDC dominated the volume of transactions performed in June. Throughout the month, USDC transacted around $1.21 trillion, representing some 67% of all stablecoin transactions. USDT came in second with about $576 billion worth of volume, accounting for about 32%. PayPal’s stablecoin, PYUSD, came in second with $2.42 billion worth of transactions.

The move indicates that users and institutions are increasingly turning to stablecoins with enhanced regulatory compliance and greater engagements on financial platforms.

Base and Ethereum Lead Blockchain Activity

In June, Base was the highest network in stablecoin transaction volume out of all the blockchain networks. Meanwhile, the Ethereum L2 network was able to process approximately $565 billion, whereas Ethereum itself processed $562 billion. Tron ranked third with about $320 billion in Total Transactions.

The trend of such activity seems to coincide with an increase in demand for quick and effective payment solutions using blockchain technology.

Regulatory Changes Reshape the Stablecoin Market

USDT also has regulatory issues in Europe since the implementation of the Markets in Crypto-Assets (MiCA) framework. European platforms have cut back on or stopped accepting stablecoins that do not conform to the new regulations, putting further pressure on Tether’s market standing.

USDC, on the other hand, has bolstered its position by obtaining the necessary approvals to be eligible to operate under MiCA. This has led it to being a preferred choice of exchanges, payment companies, and institutional investors seeking regulatory certainty. 

At the same time, the stablecoin economy keeps developing and growing as the new stablecoin Open USD (OUSD), supported by over 140 companies, including Visa & MasterCard, has been launched as a new economy.

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