In 2024, the European cryptocurrency market saw a significant boost in growth with the emergence of euro-backed stablecoins. This growth was largely fueled by the implementation of the Markets in Crypto-Assets Regulation (MiCA) which provided regulatory clarity and instilled investor confidence in the market. Euro-backed stablecoins saw a new record in monthly volumes, reaching nearly €800 million in November. Banking Circle’s EURI stablecoin, along with other MiCA-compliant stablecoins, played a key role in this surge, collectively capturing 91% of the euro-backed stablecoin market share by the end of the year.
The explosive growth in the European cryptocurrency market was not limited to stablecoins alone. Euro-denominated trade volumes hit record highs in 2024, reaching over €12 billion weekly in November. Bitcoin also saw a surge, reaching an all-time high above $100,000. The euro solidified its position as the third most traded fiat currency in global crypto markets, behind the US dollar and the Korean won. European exchanges like Bitvavo, Kraken, and Coinbase played a crucial role in this growth, with Bitvavo leading in euro-denominated trading volumes, accounting for nearly 50% of the market.
MiCA compliance and regulatory clarity have been instrumental in attracting institutional players and driving liquidity in the European crypto market. However, challenges still persist, with Tether deciding to cease support for its euro-backed stablecoin, EURT, citing regulatory concerns. Despite this, the overall growth trajectory remains positive, with increasing institutionalization of Bitcoin and improved regulatory conditions contributing to the market’s growth.
European exchanges have been proactive in meeting the growing demand for euro-denominated pairs, listing over 331 new pairs in 2024. This expansion has led to significant improvements in liquidity in euro markets, with the combined 1% market depth for euro pairs doubling by November. The rise in euro-denominated trade volumes reflects a broader trend of increased institutional interest and participation in the European cryptocurrency market.
Overall, the European cryptocurrency market has experienced transformative growth in 2024, driven by the rise of euro-backed stablecoins, improved regulatory conditions, and increasing institutionalization of Bitcoin. The market has seen record highs in trade volumes, with the euro emerging as a key fiat currency in global crypto markets. European exchanges have played a pivotal role in facilitating this growth, expanding their offerings and improving liquidity in euro markets. Despite challenges, the outlook for the European cryptocurrency market remains positive as it continues to evolve and attract new players.
