MiCA-compliant stablecoins lead European market with 91% share

As cryptocurrency adoption continues to grow in Europe, stablecoins compliant with the Markets in Crypto-Assets Regulation (MiCA) are gaining substantial traction in the region.

A report by research firm Kaiko and crypto exchange Bitvavo emphasised this shift in the European market, noting the rising role of the euro in cryptocurrency trading.

Monthly euro-denominated trading volumes in 2024 consistently surpassed the 2023 average, with March and November seeing over $42 billion in monthly volume.

This marked an increase in the euro's presence in crypto markets, making it the third most-traded fiat currency in 2024, behind the US dollar and the Korean won.

The MiCA regulation, which governs asset-referenced and electronic money tokens, has contributed to the surge in stablecoin usage.

With the full implementation set for December 30, these regulations have reshaped the landscape of stablecoins in Europe.

Tether, a leading stablecoin issuer, discontinued its euro-pegged stablecoin EURt on November 27, citing the evolving regulatory environment in Europe.

Despite this, euro-backed stablecoins have flourished, with monthly trading volumes exceeding $300 million in 2024.

November saw nearly $800 million in trading volume.

By the end of 2024, MiCA-compliant stablecoins have dominated the European stablecoin market, with Circle’s EURC, Societe Generale’s EURCV, and Banking Circle’s EURI collectively holding 91% of the market share.

Crypto exchange Binance has also become a significant player in the region, listing EURI in August, which allowed it to closely match Coinbase’s market share.