Despite recent delistings from European crypto exchanges, Tether (USDT) shows resilient demand according to new data analysis from CryptoQuant CEO Ki Young Ju.
European exchanges began removing USDT from their platforms to comply with the Markets in Crypto Assets (MiCA) regulation, which went into effect December 30th. The regulation requires stablecoin issuers to obtain specific licenses for EU operations - a requirement Tether has not met.
The regulatory pressure caused USDT's market cap to decline from $140.5 billion to $138 billion in the past week, while also pushing its price slightly below its intended $1 peg to $0.998.
However, Ki Young Ju presented exchange reserve data suggesting these developments have not meaningfully impacted Tether's position. Exchange reserves, which indicate buying pressure for stablecoins, remain stable despite the EU regulatory challenges.
"Tether FUD: EU exchanges are delisting USDT ahead of MiCA. USDT is losing its power!" Ki Young Ju posted on X (formerly Twitter), alongside charts showing steady exchange reserves that contradict fears about Tether's market standing.
The data appears to show that while European regulatory compliance has forced some exchanges to delist USDT, overall demand for the world's largest stablecoin by market capitalization continues unaffected.
This analysis comes at a critical time as market participants watch how Tether navigates increasing regulatory oversight while maintaining its dominant position in the crypto ecosystem.