CCData Research’s July 2024 Report Highlights Growth and Trends in Stablecoins and CBDCs Market

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As a seasoned researcher with over two decades of experience in the financial sector, I must say that the July 2024 edition of CCData Research’s “Stablecoins & CBDCs” report left me both impressed and intrigued. The consistent growth in stablecoin market capitalisation is a testament to the maturing digital asset industry, while the decline in European stablecoins presents an interesting case study for further exploration.

On the 31st of July, 2024, CCData Research revealed the July 2024 version of its “Stablecoins & CBDCs” study. This report offers a broad perspective on the latest trends and market movements in the stablecoin and central bank digital currencies (CBDCs) industries.

Under the supervision of the Financial Conduct Authority (FCA), CCData stands out as a leading supplier of high-quality digital asset information for institutions. Using tick data from renowned exchanges worldwide and combining various datasets, CCData offers a broad market perspective encompassing trades, derivatives, order books, plus historical, social, and blockchain data.

Stablecoins Market Capitalisation Hits $164 Billion

As a crypto investor, I’ve noticed a significant jump of approximately 2.11% in the total market cap of stablecoins this July, pushing it up to an impressive $164 billion. This is not just any increase, but the tenth one in a row and the highest we’ve seen since April 2022. This consistent growth suggests that new capital has been steadily flowing into the stablecoin market, as suggested by the overall positive trends in digital asset prices throughout the month.

European Stablecoins Market Continues to Decline

Instead of increasing, the total value of European stablecoins decreased by 1.43% to reach approximately $235 million. This marks the seventh straight monthly decline for this sector. More specifically, two stablecoins that comply with MiCA regulations, Monerium’s EUR eMoney and Membrane Finance’s EUROe, experienced substantial drops in their market values. These reductions amounted to 16.5% for Monerium’s EUR eMoney, bringing its value down to $14.3 million, and 9.92% for Membrane Finance’s EUROe, resulting in a value of $1.71 million.

Stablecoin Trading Volume Trends

The trading volume of stablecoins dropped by 8.35%, reaching $795 billion as of July 25th. However, experts predict that this decrease will be temporary due to upcoming spot Ethereum ETF launches and a generally optimistic mood in the industry following the Bitcoin Conference. Notably, Tether (USDT) continues to dominate stablecoin trading on centralized platforms, holding a market share of 73.5% among the leading ten stablecoins.

USD Coin (USDC) Sees Market Cap Increase

1. In July, the market value of USD Coin (USDC) experienced a 5.36% growth, culminating at $33.6 billion. This represents the first month-end increase for USDC’s market capitalization since April. Moreover, the trading volume for USDC pairs on centralized exchanges skyrocketed by 48.1%, totaling $135 billion. This significant surge is linked to the stablecoin’s conformity with the Markets in Crypto-Assets (MiCA) regulations that were implemented in Europe at the end of 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.

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2024-07-31 20:23