As a seasoned analyst with extensive experience in tracking the global cryptocurrency landscape, I’ve witnessed firsthand the remarkable evolution of this dynamic industry. The recent surge in euro trading volumes and the dominance of MiCA-compliant stablecoins in Europe are clear indicators of maturing regulatory frameworks and growing investor confidence in digital assets.
With an increasing acceptance of cryptocurrencies throughout Europe and the emergence of regulatory guidelines, compliant stablecoins are gaining a substantial portion of the market, indicating a marked change in their utilization pattern across the continent.
According to a recent study from research company Kaiko and European crypto exchange Bitvavo, there’s been an increase in cryptocurrency trading across Europe. Euro trading volume is growing, while the use of stablecoins is evolving to meet new regulatory standards.
Monthly trading volumes for the euro exceeded 2023’s average
As an analyst, I’ve observed a striking trend in my analysis: Euro-denominated trading volumes throughout 2024 consistently outperformed the average of 2023, with peaks in March and November hitting over $42 billion each month. This pattern suggests that the euro is increasingly significant within the realm of cryptocurrency markets.
As a researcher looking back at the crypto market landscape of 2024, I found that my own currency, the Euro, held the third spot in terms of trading volume among traditional fiat currencies. Interestingly, it accounted for approximately 7.5% of the total fiat-based trading volume. Notably, the US dollar reigned supreme with a whopping 49.9% share, while the Korean won claimed a substantial 33.4%. This data underscores the global influence and dominance of these three currencies in the crypto sphere.
MiCA-compliant stablecoins dominate market
Beyond the expanding influence of the euro in cryptocurrency exchanges, the researchers additionally pointed out a dynamic and evolving European landscape for stablecoins.
The enactment of the Markets in Crypto-Assets Regulation (MiCA) has brought about a substantial transformation in the region’s stablecoin terrain. Starting from June 30, regulations for asset-linked and electronic money tokens have been gradually put into effect, with a complete implementation slated for December 30.
Effective November 27th, Tether, the stablecoin issuer, has decided to stop supporting its Euro-linked stablecoin, EURt (EURT), across all blockchain platforms. This move is in line with Tether’s overall strategic planning, as they attribute it to the ongoing changes in Europe’s regulatory landscape concerning stablecoins. Consequently, Tether will no longer be creating new EURt tokens on any blockchains.
Even though there were challenges, euro-supported stablecoins flourished remarkably. In fact, their monthly trading volumes surpassed $300 million consistently throughout the year 2024. The most active month was November, where an impressive trading volume of close to $800 million was recorded.
By the end of 2024, stablecoins that comply with MiCA (Markets in Crypto-Assets) regulations have dominated the European market, accounting for approximately 91% of its share. Circle’s EURC, Societe Generale’s EURCV, and Banking Circle’s EURI combined have become the leading players, holding a significant portion of the market.
In August, Binance significantly increased its influence in the local stablecoin market, nearly equaling Coinbase’s market share following the addition of EURI to their platform.
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2024-12-18 13:37