Tether’s market cap sheds $1.4b as MiCA activates
Tether’s U.S. dollar stablecoin witnessed its biggest downturn since FTX collapsed during the sluggish 2022 crypto market period.
On-chain data showed that Tether’s stablecoin (USDT) lost approximately 1.2% of its market cap this week as EU digital asset regulations took full effect on Dec. 30.
The token’s market cap fell to $137 billion from its December peak of $140 billion, fueling speculation about Tether’s future and potential USDT volatility. Concerns arose that USDT’s operator might exit the European Union now that new laws have been enacted.
However, social media sentiment was countered by industry leaders and observers who pointed to data affirming USDT’s resilience outside the EU.
