As cryptocurrency adoption grows in Europe and regulatory frameworks develop, compliant stablecoins are capturing a significant share of the market, signaling a notable shift in their usage across the region.
A new report by research firm Kaiko and Netherlands-based crypto exchange Bitvavo highlights the expansion of cryptocurrency trading in Europe, with euro trading volumes rising and stablecoin use adapting to new regulations.
Monthly trading volumes for the euro exceeded 2023’s average
The report revealed that euro-denominated trading volumes throughout 2024 consistently exceeded the 2023 average, with peaks in March and November surpassing $42 billion each month. Researchers noted this reflects the euro’s increasing role in cryptocurrency markets.
Monthly euro-denominated trading volume. Source: Kaiko and Bitvavo
The euro was the third most-traded fiat currency in the crypto space in 2024, accounting for 7.5% of fiat-based trading volume. The United States dollar maintained dominance with a 49.9% share, followed by the Korean won with 33.4%.
MiCA-compliant stablecoins dominate market
Apart from the growing role of the euro in crypto markets, the researchers also highlighted a shifting stablecoin landscape in Europe.
The introduction of the Markets in Crypto-Assets Regulation (MiCA) has significantly reshaped the region’s stablecoin landscape. These rules governing asset-referenced and electronic money tokens began rolling out on June 30, with full implementation expected by Dec. 30.
On Nov. 27, stablecoin issuer Tether discontinued support for its euro-pegged stablecoin EURt (EURT) on all blockchains. Tether said the decision aligns with its broader strategic direction, citing Europe’s “evolving regulatory frameworks” on stablecoins. The stablecoin company said it is discontinuing support for EURT on all blockchains and will cease minting the tokens.
Despite this, euro-backed stablecoins thrived, with monthly volumes exceeding $300 million throughout 2024. November saw the highest activity, with nearly $800 million in trading volume.
By late 2024, MiCA-compliant stablecoins have captured the majority of the European market. Circle’s EURC, Societe Generale’s EURCV, and Banking Circle’s EURI together held 91% of the market share by November.
Binance also emerged as a major player in the region’s stablecoin market, almost matching Coinbase’s market share after listing EURI in August.
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