With the implementation of MiCA, the market value of USDT has seen its largest decline since the FTX collapse

ChainCatcher news, according to CoinDesk, TradingView data shows that this week the market capitalization of USDT fell by nearly 1.1% to $137.24 billion, marking the largest drop since the FTX exchange collapse in the second week of November 2022. In mid-December 2024, the market capitalization of USDT reached a record $140.72 billion.

Previously, several exchanges located in the EU and Coinbase decided to delist USDT due to its non-compliance with the EU's Markets in Crypto-Assets (MiCA) regulation, which comes into full effect on December 30. USDT serves as a gateway into the cryptocurrency market, widely used by investors to fund purchases of spot cryptocurrencies and derivatives trading.

As a result, the delisting and market cap decline have sparked speculation on social media about an overall downturn in the cryptocurrency market. However, these concerns may be unfounded, and the negative impact may be limited to the Eurozone at most.