Euro-backed stablecoins boom after MiCA, reach €800m in monthly volumes

In 2024, euro-backed stablecoins emerged as a critical driver of European cryptocurrency market growth, bolstered by the implementation of the Markets in Crypto Assets (MiCA) Regulation.

In fact, these tokens have achieved a new record in terms of monthly volumes after attracting liquidity and institutional players across the region.

MiCA drives adoption of Euro-backed Stablecoin

Monthly volumes of euro-backed stablecoins hit a multi-year high, rising to nearly €800 million in November. According to the latest report from research firm Kaiko and Netherlands-based cryptocurrency exchange Bitvavo, this sharp increase can be largely attributed to Banking Circle’s EURI stablecoin gaining significant strength after listing on Binance.

Other MiCA-supported stablecoins, such as fintech Circle’s EURC and Société Générale’s EURCV, also contributed to the surge, collectively capturing 91% of the stablecoin-backed market share euro at the end of the year.

The regulatory clarity provided by MiCA, which came into force in June, has been crucial in instilling investor confidence, boosting liquidity and attracting institutional players to the market. However, Tether’s decision to stop supporting its euro-backed stablecoin, EURT, citing regulatory concerns, highlights ongoing challenges within the evolving framework.

Explosive growth in European crypto markets

Narrowing down, the broader European cryptocurrency market saw transformative growth in 2024, with euro-denominated trading volumes reaching all-time highs. In November alone, weekly trading volumes topped €12 billion, more than double October levels, as Bitcoin hit an all-time high above $100,000.

The euro consolidated its position as the third most traded fiat currency in global crypto markets, behind the US dollar and the Korean won, and its share of Bitcoin-fiat trade increased from 3.6% to almost 10%. This growth reflects improving regulatory conditions and the growing institutionalization of Bitcoin.

European exchanges such as Bitvavo, Kraken and Coinbase played a key role, with Bitvavo leading in euro-denominated trading volumes, accounting for almost 50% of the market. These platforms expanded their offering significantly and included more than 331 new euro-denominated pairs in 2024 to meet growing demand. Liquidity in euro markets also improved markedly, with the combined market depth of 1% of euro-denominated pairs doubling in November.

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