Europe’s Crypto Market Shifts as MiCA-Backed Stablecoins Dominate

As cryptocurrency continues to gain traction across Europe, the impact of evolving regulatory frameworks is becoming increasingly evident, particularly in the growing influence of compliant stablecoins.

New research from Kaiko and the Dutch-based exchange Bitvavo reveals that European cryptocurrency markets have seen notable shifts, especially in terms of trading volumes and stablecoin adoption.

In 2024, monthly euro-denominated trading volumes have consistently surpassed those of 2023, peaking above $42 billion in March and November. This surge highlights the euro’s emerging prominence in crypto trading, now securing 7.5% of total fiat trading volume, with the U.S. dollar and the Korean won leading with shares of 49.9% and 33.4%, respectively.

A significant transformation is also occurring within the stablecoin sector, driven by the Markets in Crypto-Assets Regulation (MiCA) that came into effect in June. The new guidelines are shaping how stablecoins are issued and traded in Europe. While Tether’s decision to phase out its euro-pegged EURT stablecoin marked a significant shift, euro-backed stablecoins like EURC by Circle, EURCV by Societe Generale, and EURI by Banking Circle have flourished under the new regulations. Together, they control 91% of the European stablecoin market by late 2024.

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Binance, following the regulatory changes, has strengthened its position in the region, closely matching Coinbase’s share after adding EURI to its platform in August. This strategic move underscores the growing importance of MiCA-compliant assets in Europe’s increasingly regulated crypto market.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.