The cryptocurrency landscape in Europe has undergone a remarkable transformation in 2024, primarily driven by the advent of euro-backed stablecoins. These digital currencies, pegged to the euro, have become significant players in the market, particularly following the implementation of the Markets in Crypto-Assets Regulation (MiCA). This regulatory framework has provided a safer and clearer environment, encouraging both retail and institutional investors to engage more boldly in cryptocurrency trading.
In November 2024, the volume of euro-backed stablecoin transactions soared to nearly €800 million, marking the highest monthly total in several years. The surge can be largely attributed to the rise of Banking Circle’s EURI stablecoin, which gained considerable momentum after its listing on Binance, a major global exchange. In tandem, MiCA-compliant stablecoins like Circle’s EURC and Sociétée Générale’s EURCV have collectively amassed a significant share of the market, commanding 91% of euro-backed stablecoins by year’s end.
The regulatory overhaul initiated by MiCA, which came into effect in June 2024, has been instrumental in fostering investor confidence. Where uncertainty previously loomed, clear guidelines now reign, driving an influx of liquidity into the market. Nevertheless, the recent withdrawal of Tether’s euro-backed stablecoin, EURT, due to regulatory ambiguities, underscores the challenges that still persist within this evolving financial ecosystem.
Zooming out, the ripple effects of stablecoin popularity have been palpable across the broader European cryptocurrency market. The total euro-denominated trade volumes reached unprecedented levels, with November reporting weekly trades exceeding €12 billion—more than double those seen in October. As Bitcoin crossed the significant milestone of $100,000, the euro solidified its place as the third most traded fiat currency in the realm of cryptocurrency, trailing only the US dollar and the Korean won. The share of euro in Bitcoin trades nearly doubled from 3.6% to 10%, showcasing an increasing appetite for euro as a trading currency in the crypto space.
European exchanges have been crucial in this burgeoning market, with platforms like Bitvavo, Kraken, and Coinbase enhancing their services to accommodate the increasing demand for euro-denominated transactions. Bitvavo emerged as a leader in this sector, accounting for nearly half of the market in euro transactions. To meet this growing interest, these exchanges collectively listed over 331 new euro-denominated trading pairs throughout 2024.
Furthermore, the liquidity in euro markets has seen significant improvement, with the market depth for euro-denominated pairs effectively doubling by the end of November. Such developments not only reassure investors but also signal a maturing market ready to embrace innovative trading practices.
2024 has been a watershed year for euro-backed stablecoins and the European cryptocurrency market at large. As regulatory frameworks continue to evolve and stabilize, the potential for further growth remains significant. The trends observed this year point toward a more integrated, confident, and dynamic crypto landscape in Europe, setting the stage for even greater advancements in the years to come.