Mike Smith
4 days ago
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With cryptocurrency adoption growing in Europe and the regulatory framework evolving, MiCA-compliant stablecoins are taking a key position in the market, demonstrating a significant shift in their use.
According to research from Kaiko and crypto exchange Bitvavo, cryptocurrency trading volumes in Europe continued to grow in 2024. Euro trading volumes consistently exceeded the 2023 average, peaking at $42 billion in March and November. In the crypto space, the euro became the third most traded fiat currency, behind the US dollar (49.9%) and the Korean won (33.4%), accounting for 7.5%. This highlights the euro’s growing role in international cryptocurrency markets.
The stablecoin landscape in Europe has undergone significant changes thanks to the implementation of the Markets in Cryptoassets Regulation (MiCA). The new rules governing asset-backed tokens and e-money came into effect on June 30, with full implementation planned for the end of the year. Against this backdrop, issuer Tether announced that it would end support for Euro Tether (EURT), citing regulatory changes in the region.
Despite this, trading volumes of euro-backed stablecoins have grown, exceeding $300 million per month. In November 2024, a record high of almost $800 million was recorded. At the end of the year, MiCA-compliant stablecoins captured 91% of the European market, with Circle’s EURC, Societe Generale’s EURCV, and Banking Circle’s EURI leading the way.
Cryptocurrency exchange Binance has strengthened its position, nearly catching up to Coinbase in market share after adding EURI in August, highlighting the increased competition among the region’s leading exchanges.
The growing importance of MiCA-compliant stablecoins demonstrates market participants’ confidence in the new regulatory framework, which contributes to the stability and further development of the European cryptocurrency market.
