Hold onto your hats, folks, because November 2024 was a wild ride for the European crypto scene! We're talking a jaw-dropping €12 billion in weekly trade volumes, thanks to Bitcoin's meteoric rise past the $100K mark and a stampede of institutional interest.
This year, euro-backed stablecoins have been the real superheroes, propelling the European crypto market to new heights. The secret sauce? The Markets in Crypto-Assets Regulation (MiCA) that gave these digital currencies the regulatory thumbs-up they needed to thrive.
November saw euro-backed stablecoins smashing records left and right, with monthly volumes soaring to nearly €800 million. The dynamic duo behind this surge? Banking Circle's EURI stablecoin, which hit the jackpot after joining forces with Binance, and other MiCA-compliant coins like Circle’s EURC and Société Générale’s EURCV. Together, these heroes snagged a whopping 91% of the euro-backed stablecoin market.
With MiCA clearing the regulatory fog, investor confidence got a major boost, drawing in liquidity and a host of institutional players. But not everything's smooth sailing. Tether's decision to pull the plug on their euro-backed stablecoin, EURT, due to regulatory headaches, reminds us the crypto seas are still a bit choppy.
Zooming out, the European crypto market is experiencing a growth spurt like never before. November's record-breaking €12 billion in weekly trade volumes more than doubled October's figures as Bitcoin celebrated its $100K milestone. The euro is strutting its stuff as the third most traded fiat currency in the global crypto arena, trailing only the US dollar and Korean won. Its slice of the Bitcoin-fiat trading pie jumped from 3.6% to nearly 10%, a testament to better regulatory conditions and the big guns diving into Bitcoin.
European exchanges like Bitvavo, Kraken, and Coinbase are the unsung heroes of this story. Bitvavo, in particular, is leading the charge, cornering nearly 50% of the euro-denominated trading market. These platforms are on fire, rolling out over 331 new euro-denominated pairs in 2024 alone to keep up with the fever-pitch demand. Liquidity in euro markets has doubled, making these exciting times for crypto enthusiasts and investors alike. It's a European crypto revolution, and everyone's invited!
