Key Points
- Euro-denominated crypto trading volumes reached a multi-year high in November 2024, nearly hitting €50B and more than doubling October’s levels, as Bitcoin achieved new all-time highs above $100k.
- MiCA regulation implementation has transformed the European stablecoin landscape, with MiCA-compliant stablecoins capturing 91% market share by November 2024, marking a significant shift in the market structure.
Euro Emerges as a Leading Crypto Trading Currency
According to a new research report by Kaiko, the European cryptocurrency market has demonstrated remarkable growth throughout 2024, with the euro cementing its position as the third most traded fiat currency in crypto markets, trailing only the US dollar and Korean won. The currency’s significance in Bitcoin trading has notably increased, with BTC-EUR pairs now commanding nearly 10% of global Bitcoin-fiat trading volume, up from 3.6% at the start of the year. This growth has positioned BTC-EUR above BTC-JPY, reclaiming its spot as the third-largest Bitcoin-fiat trading pair globally.
European Exchanges Strengthen Market Position
Amsterdam-based Bitvavo has emerged as the dominant player in European crypto trading, controlling approximately 50% of euro-denominated trading volumes (excluding stablecoin pairs). The exchange, along with Kraken, Coinbase, and Binance, collectively handles over 85% of euro-denominated cryptocurrency trading. Kaiko’s data shows that Bitvavo and Kraken stand out particularly, each maintaining average daily volumes exceeding €200 million and offering the most comprehensive selection of euro-denominated trading pairs.
MiCA’s Impact Reshapes Stablecoin Landscape
The implementation of the Markets in Crypto-Assets (MiCA) regulation in June 2024 has catalyzed significant changes in the European crypto ecosystem. The regulatory framework has particularly impacted the stablecoin market, leading to major exchanges adjusting their offerings. New MiCA-compliant stablecoins, including Circle’s EURC, Société Générale’s EURCV, and Banking Circle’s EURI, have rapidly gained traction. The EURI stablecoin, in particular, has shown impressive growth after its listing on Binance, contributing to a surge in euro-backed stablecoin trading volumes to nearly $800 million in November.
Market Depth and Liquidity Show Strong Improvement
Market depth for euro-denominated trading pairs has shown significant improvement, particularly since November 2024. The BTC-EUR market has established itself as the second most liquid Bitcoin-fiat market globally, with an average daily depth of 758 BTC, more than double that of BTC-GBP at 350 BTC. Among exchanges, Bitvavo and Kraken demonstrate the most competitive liquidity, with the tightest bid-ask spreads of 2.6 and 3 basis points respectively for major tokens.
The transformation of the European crypto market in 2024 signifies a maturing ecosystem, with improved regulatory clarity through MiCA playing a crucial role in fostering institutional confidence and market growth. As new players continue to enter the market and euro-backed stablecoins gain further traction, the European crypto market appears well-positioned for continued expansion, potentially challenging the traditional dominance of USD-based crypto trading.
