Euro-pegged stablecoins have become a key catalyst for growth within the European cryptocurrency sector, fueled by the introduction of the Markets in Crypto-Assets Regulation (MiCA) . These digital assets achieved new milestones in monthly trading volumes, drawing in significant liquidity and attracting institutional interest across Europe. MiCA Drives Adoption Of Euro-Pegged Stablecoins In November, the monthly trading volumes for euro-backed stablecoins reached their highest level in years, soaring to almost &euro800 million. A recent report by Kaiko and the Netherlands-based crypto exchange Bitvavo reveals that this surge was primarily driven by the EURI stablecoin, which gained substantial momentum following its listing on Binance. Other stablecoins in line with MiCA, such as EURC and EURCV, also contributed to the growth. The regulatory clarity provided by MiCA, which came into effect in June, was instrumental in boosting investor confidence, driving liquidity, and attracting institutional investors. However, regulatory concerns continue to cause issues, as was highlighted by Tether deciding to discontinue its euro-backed stablecoin, EURT. Explosive Expansion In November, weekly trading volumes surpassed &euro12 billion, more than double the volume seen in October, as Bitcoin (BTC) hit an all-time high above $108,000. Meanwhile, the euro solidified its position as the third most traded fiat currency in global crypto markets, following the U.S. dollar and the Korean Won. Several exchanges such as Bitvavo, Kraken, and Coinbase also played a pivotal role, with Bitvavo leading the charge in euro-denominated trading volumes, capturing nearly 50% of the market. These exchanges significantly expanded their offerings, listing over 331 new euro-denominated pairs in 2024 to cater to growing demand. Liquidity in the euro markets also improved dramatically, with the combined market depth for euro-denominated pairs increasing twofold by November.
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