Catenaa, Monday, December 30, 2024 – Euro-backed stablecoins have experienced significant growth in 2024, reaching nearly €800 million in monthly volumes following the implementation of the Markets in Crypto-Assets Regulation (MiCA). This milestone highlights the growing influence of these stablecoins in the European cryptocurrency market.
According to a report from research firm Kaiko and crypto exchange Bitvavo, the surge in volume was largely driven by the EURI stablecoin from Banking Circle, which gained substantial traction after its listing on Binance. Other MiCA-compliant stablecoins, including Circle’s EURC and Société Générale’s EURCV, contributed to the trend, collectively securing 91% of the euro-backed stablecoin market share by the end of the year.
MiCA, which came into effect in June 2024, has provided much-needed regulatory clarity, boosting investor confidence and attracting institutional players to the market. However, Tether’s decision to discontinue its euro-backed stablecoin, EURT, citing regulatory concerns, underscores the challenges the sector still faces.
The broader European cryptocurrency market has also witnessed explosive growth, with euro-denominated trade volumes hitting record highs. November’s weekly volumes surpassed €12 billion, a dramatic increase from October. The euro’s position as the third most traded fiat currency in crypto markets has strengthened, further cementing the region’s role in the global crypto economy.
