USDC has overtaken USDT as the most-traded stablecoin against the euro, according to data from crypto analytics firm Kaiko. The Circle-issued token now accounts for 56% of euro stablecoin trading volume, up from a smaller share since January 2024. The shift comes as exchanges across the European Union restrict USDT to comply with the Markets in Crypto-Assets (MiCA) regulation.
MiCA's squeeze on USDT
MiCA, the EU's comprehensive crypto rulebook, has forced exchanges operating in the bloc to delist or limit trading in stablecoins that don't meet its requirements. Tether's USDT, the largest stablecoin by market capitalization, has found itself in the crosshairs. Several major platforms have already restricted USDT pairs for EU users, pushing traders toward alternatives that comply with the new regime.
USDC, issued by Circle, has emerged as the main beneficiary. The token's regulatory posture in Europe has allowed it to stay listed and liquid on exchanges serving EU customers. That access has translated directly into market share.
Liquidity follows regulation
Kaiko's data shows that USDC now offers deeper liquidity in euro stablecoin markets. For traders, that matters more than brand loyalty. Thinner order books mean wider spreads and worse execution, so when USDT pairs become harder to access, volume migrates to where trading is cheapest and most reliable. USDC's 56% share of euro stablecoin trading volume reflects that migration.
The numbers also suggest that the shift isn't a blip. Since January 2024, USDC's share has climbed steadily, tracking the gradual rollout of MiCA's stablecoin provisions and exchange compliance deadlines. Each restriction on USDT has pushed more activity toward USDC.
Exchanges adjust to the new rulebook
The exchange restrictions aren't uniform. Some platforms have delisted USDT pairs entirely for EU users, while others have limited trading to certain order types or imposed additional compliance checks. That patchwork approach has created friction for traders who previously used USDT as their default quote currency for euro pairs.
USDC's gain is a direct result of that friction. With USDT harder to trade, market makers and arbitrageurs have adjusted their inventory toward USDC, deepening its liquidity in turn. The data from Kaiko captures the aggregate effect: more volume, tighter spreads, and a higher share of euro stablecoin trading.
Tether hasn't stood still. The company has been working on compliance measures, but it's unclear whether those efforts will satisfy MiCA requirements in time to reverse the trend. For now, exchanges are proceeding with restrictions, and USDC is consolidating its position as the go-to stablecoin for euro trading pairs.
The next few months will show whether USDT can claw back share or whether USDC's lead becomes entrenched. Much depends on how quickly Tether can meet MiCA's standards and how exchanges respond. Kaiko's data will be the yardstick, but the direction of travel since January 2024 is clear.
