Circle’s USDC stablecoin is currently experiencing the highest demand among regulated stablecoins, according to data from Kaiko.

Kaiko’s recent report highlights that after Circle announced that its USDC and EURC stablecoins would comply with European Markets in Crypto-assets Regulation (MiCA), both have seen significant volume increases.

While non-compliant stablecoins still dominate the market, comprising 88% of the total stablecoin volume, there is a noticeable shift towards regulated products.

This shift could be driven by a growing preference for transparency in the market. Exchanges and market makers may begin favoring compliant stablecoins, especially as major crypto exchanges like Binance, Bitstamp, Kraken, and OKX have started restricting or delisting non-compliant stablecoins for their European users.

In the past year, the volume share of compliant stablecoins has risen, reflecting this increased demand for regulated alternatives. So far, this trend has mainly benefited USDC.

Another contributing factor to USDC’s growth is its rising use in perpetual futures settlement, even though its market share is still much smaller compared to Tether’s USDT.