Kaiko: MiCA-compliant stablecoins lead the European market, with monthly cryptocurrency-euro trading volumes exceeding the 2023 average

The European cryptocurrency market is experiencing significant growth, especially in terms of EUR-denominated volumes. Research by Kaiko and Bitvavo shows that monthly EUR trading volumes have consistently exceeded the 2023 average, with notable peaks in March and November. Volumes in both months exceeded $42 billion, indicating the growing importance of the euro in the cryptocurrency market. By the end of 2024, the euro accounted for 7.5% of total fiat-cryptocurrency trading volume, making it the third most traded currency after the US dollar (49.9%) and the Korean won (33.4%). The rise in EUR trading volumes comes as the European regulatory landscape continues to evolve. The European crypto market has seen a significant shift in the use of stablecoins with the introduction of the Markets in Crypto Assets (MiCA) regulation. The regulatory framework came into effect on June 30, 2024, and will be fully implemented on December 30, 2024. On November 27, 2024, Tether announced that it would stop minting EURt and discontinue support for all blockchains. Despite Tether's exit, euro-backed stablecoins are still thriving in Europe. As of the end of 2024, MiCA-compliant stablecoins dominate the market, with Circle's EURC, Societe Generale's EURCV, and Banking Circle's EURI together accounting for 91% of the European stablecoin market. Crypto exchanges such as Binance and Coinbase are also playing a key role in expanding the MiCA-compliant stablecoin market. Binance launched EURI in August 2024, almost matching Coinbase's market share. Coinbase has also adjusted its services in accordance with the new MiCA regulations, and from December 1, 2024, the exchange will end its USDC rewards program for users in the European Economic Area (EEA). (Cryptonews)