Tether's USDT has seen its market cap decline by over 1%, marking the most significant drop since the FTX crash in November 2022. The market cap fell to $137.24 billion this week, influenced largely by compliance issues with the EU's Markets in Crypto-Assets (MiCA) regulations. This led several European exchanges and Coinbase to delist USDT, though its overall market impact appears limited. USDT is crucial for many investors in the crypto ecosystem as it acts as a gateway for spot purchases and derivatives trading. However, most of USDT’s trading volume occurs in Asia and the U.S., suggesting that the EU delistings may not severely affect its dominance. Industry experts indicate that while the MiCA regulations may stifle innovation in the EU's digital asset market, they believe USDT will maintain its position due to higher trading volumes in other regions.

Source 🔗