🚀 Kaiko Report: Regulated Stablecoins Take the Market Lead
posted 2 hr ago
With the MiCA (Markets in Crypto-Assets) framework coming into effect, the European crypto market is seeing profound changes. A joint study by Kaiko and Bitvavo highlights rising euro trading volumes and a reshaped stablecoin market landscape.
Kaiko and Bitvavo’s analysis highlights a notable rise in crypto trading volumes involving the euro in 2024. Monthly figures consistently exceeded 2023 averages, peaking at $42 billion in both March and November. This underscores the euro’s expanding role in the global crypto market.
In 2024, the euro ranked third among fiat currencies by trading volume, contributing 7.5% of all fiat-to-crypto activity. The US dollar retained its dominance at 49.9%, with the South Korean won following at 33.4%. Together with the introduction of transparent regulations, these metrics solidify Europe’s status as an attractive hub for cryptocurrency investors.
The Euro: A Key Player in Crypto Trading. Source: research.kaiko
MiCA Regulation: Driving Change in the Stablecoin Sector
The enactment of MiCA, which oversees fiat-backed tokens, marks a significant milestone for Europe’s stablecoin market. With its provisions taking effect on June 30, 2024, MiCA has ushered in a modern regulatory landscape.
On November 27, Tether made waves in the crypto world by announcing the end of support for its euro-pegged stablecoin, EUR₮, across all blockchains. The decision was explained as part of aligning with “evolving regulatory frameworks,” seen by many as a strategic move ahead of MiCA adoption.
Even with EUR₮’s departure, the euro-backed stablecoin market remained strong, with monthly trading volumes exceeding $300 million throughout 2024 and hitting a peak of almost $800 million in November. These figures reflect ongoing demand for tokenized euro products.
Euro-Backed Cryptocurrency Trading Volumes. Source: research.kaiko
MiCA-Regulated Stablecoins Dominate the Market
November 2024 marked a turning point as MiCA-compliant stablecoins took control of the European crypto market. A joint report from Kaiko and Bitvavo shows that Circle’s EURC, Societe Generale’s EURCV, and Banking Circle’s EURI collectively commanded 91% of the market share.
The highest trading volumes were seen in pairs involving BTC, ETH, and SOL.
The highest trading volumes were seen in pairs involving BTC, ETH, and SOL.
Euro-Paired Cryptocurrencies in Focus. Source: research.kaiko
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