As cryptocurrency adoption surges in Europe, the euro’s presence in digital trading is growing stronger. According to a recent report by research firm Kaiko and Dutch crypto exchange Bitvavo, euro-denominated trading volumes have consistently exceeded 2023 averages throughout 2024.
Peaks were observed in March and November, with monthly volumes surpassing $42 billion each. This marked growth highlights the euro’s increasing significance in global cryptocurrency markets, where it now ranks as the third most-traded fiat currency, capturing 7.5% of fiat-based trading volume. In comparison, the U.S. dollar and Korean won continue to dominate, with shares of 49.9% and 33.4%, respectively.
The report underscores how Europe’s regulatory clarity, particularly through the Markets in Crypto-Assets Regulation (MiCA), is fostering confidence and activity in the region’s cryptocurrency landscape.
MiCA Reshapes Stablecoin Dynamics in Europe
The introduction of MiCA has been a game-changer for the stablecoin ecosystem in Europe. These regulations, governing asset-referenced and electronic money tokens, began their phased rollout in June 2024. Notably, the full implementation expected by year-end.
Tether’s strategic decision to discontinue its euro-pegged stablecoin EURt (EURT) on all blockchains in November was seen as a response to Europe’s evolving regulatory climate. Despite this, the euro-backed stablecoin market has flourished, with monthly volumes exceeding $300 million throughout the year. November was particularly notable, with trading volumes nearly hitting $800 million.
MiCA-compliant stablecoins now dominate the European market. Circle’s EURC, Societe Generale’s EURCV, and Banking Circle’s EURI collectively accounted for 91% of market share by November. This dramatic shift reflects the growing alignment between regulatory compliance and market adoption.
Binance and Coinbase Compete for Market Share
Major exchanges are vying for dominance in Europe stablecoin sector. Binance has also gained major traction, nearly matching Coinbase’s market share after listing Banking Circle’s EURI in August.
The steady growth of compliant stablecoins underscores the pivotal role regulation plays in shaping the future of cryptocurrency in Europe. As the euro gains ground in global markets and stablecoins adapt to new rules, Europe is positioning itself as a hub for regulated cryptocurrency innovation.
With the MiCA framework now in place, the region is set to lead by example, demonstrating how robust regulation can coexist with dynamic market growth.
