After President Trump's inauguration, over-the-counter cryptocurrency trading and stablecoin trading volume in the United States increased more than twofold compared to the previous year, with institutional investors focusing on Bitcoin, Ethereum, and stablecoins.
According to The Block on the 11th (local time), the Finery Markets' Q1 2025 institutional trading analysis report showed that OTC trading volume increased by 141% compared to the same period last year, and stablecoin trading volume increased by 158%. The analysis was based on more than 2 million institutional spot trading data between January and March, with cryptocurrency-stablecoin trading increasing fivefold, recording the highest growth rate. This is seen as a result of the U.S. Congress actively promoting stablecoin-related bills after President Trump's inauguration.
Cryptocurrency-to-cryptocurrency trading increased by 189%, while cryptocurrency-to-fiat currency trading increased by only 35%. 95.3% of total trades consisted of Bitcoin (7% increase), Ethereum (36% increase), and stablecoins, with most altcoins still being overlooked by institutional investors. Finery analysts assessed that "the differences between trading types show that institutional investors prefer stablecoins in terms of utility connecting traditional finance and cryptocurrencies".
Stablecoins are digital assets implementing fiat currencies like dollars on the blockchain, playing a key role accounting for more than half of cryptocurrency trades. Tether (USDT) and Circle (USDC) are the two issuers with the highest market share, with regulatory changes particularly serving as a clear inflection point in the stablecoin market in Q1 2025.
Tether reached an all-time high market capitalization of $144 billion in the global market, but in Europe, major exchanges like Binance, Coinbase, and Kraken delisted some stablecoins including USDT due to MiCA regulations, losing its influence. In contrast, Circle obtained the first MiCA license in Europe and gained a rebound effect by increasing USDC trading volume 32 times compared to the previous year.
Circle is currently pursuing a U.S. listing and has selected JP Morgan Chase and Citi as underwriters. The listing is scheduled as early as late April. However, some market experts are also raising concerns that the listing process could burden the company's profitability.
Real-time news...Go to Token Post Telegram
<Copyright ⓒ TokenPost, unauthorized reproduction and redistribution prohibited>
