In 2024, the European cryptocurrency market witnessed a significant surge in growth, driven by the rise of euro-backed stablecoins and the implementation of the Markets in Crypto-Assets Regulation (MiCA). Euro-backed stablecoins, such as Banking Circle’s EURI, Circle’s EURC, and Société Générale’s EURCV, reached record-breaking monthly volumes, collectively capturing 91% of the market share. The regulatory clarity provided by MiCA, which came into effect in June, played a crucial role in instilling investor confidence, driving liquidity, and attracting institutional players. However, challenges remain, as evidenced by Tether’s decision to cease support for its EURT stablecoin due to regulatory concerns.
The European cryptocurrency market experienced explosive growth in 2024, with euro-denominated trade volumes hitting record highs. In November alone, weekly trade volumes surpassed €12 billion, more than doubling October’s levels. Bitcoin’s price soared to an all-time high above $100,000, leading to a surge in euro-fiat trading. The euro solidified its position as the third most traded fiat currency in global crypto markets, behind the US dollar and the Korean won, with its share in Bitcoin-fiat trading increasing from 3.6% to nearly 10%.
European exchanges like Bitvavo, Kraken, and Coinbase played a significant role in driving the growth of the European cryptocurrency market. Bitvavo, in particular, led in euro-denominated trading volumes, accounting for nearly 50% of the market. These platforms expanded their offerings by listing over 331 new euro-denominated pairs in 2024 to meet the growing demand for trading options. Liquidity in euro markets also significantly improved, with the combined 1% market depth for euro-denominated pairs doubling by November.
The rise of euro-backed stablecoins and the implementation of MiCA have played a crucial role in boosting investor confidence, driving liquidity, and attracting institutional players to the European cryptocurrency market. The regulatory clarity provided by MiCA has ushered in a new era of growth and innovation, setting the stage for further advancements in the industry. Despite challenges and obstacles, such as the decision by Tether to cease support for its EURT stablecoin, the European cryptocurrency market remains resilient and poised for continued growth in the years to come.
Overall, the European cryptocurrency market in 2024 witnessed substantial growth, driven by the adoption of euro-backed stablecoins, regulatory developments like MiCA, and the increasing institutionalization of Bitcoin. The market saw record-breaking trade volumes, improved liquidity, and growing interest from investors and institutions across the region. With regulatory clarity and a supportive ecosystem, the European cryptocurrency market is well-positioned to continue its upward trajectory and emerge as a key player in the global digital asset space.
