MiCA Regulation Fails to Stem Global Demand for USDT
The European Union's Markets in Crypto-Assets (MiCA) regulation has led to several platforms removing USDT from their offerings, but data show no significant decline in global demand. In fact, activity is growing in some emerging markets, where stablecoins are used for payments, transfers, and financial services.
In Argentina, the use of dollar stablecoins like USDT is increasing with Lemon's processed volume rising 60% year-over-year to $9.3 billion, with a corresponding increase in active users by 70%. This shift from store-of-value to financial infrastructure usage supports global demand despite European restrictions.
Artemis Analytics data show growth in activity on certain blockchains like Tron and Binance Smart Chain, which attract stablecoin users due to low fees. Euro stablecoins are gaining interest among institutions but will need to meet established usages around dollar stablecoins.