Europe’s cryptocurrency market is on the verge of a renaissance, according to a recent report by Kaiko, signalling a significant shift in the region’s crypto landscape.
Throughout the past year, Bitcoin has emerged as the preferred choice among European traders, while most trades continue to be conducted in fiat currencies rather than euro-denominated stablecoins.
Kaiko’s ‘State of European Crypto Markets‘ report highlights the positive impact of Europe’s new MiCA (Markets in Crypto-Assets) laws on market sentiment and regulatory clarity. These developments have attracted investment and spurred a surge in trading activity.
Notably, the report reveals that euro-denominated trading in euros peaked last month, with monthly trade volume hitting €16 billion (approximately $17 billion). The increase marks a stark contrast from three months prior when euro-denominated trade volume was hovering around €5 billion (about $5.4 billion).
Kaiko’s data also indicates a rise in transactions involving euro-backed stablecoins, further contributing to the region’s growing crypto market. Europe has seen a revival in its crypto fortunes, with traders actively participating.
One of the most significant findings in the report is the increase in Europe’s market share in global fiat trading volume. It has risen to 7.7%, up from 6.2% over the previous 12 months. This signals a notable turnaround for Europe, which has historically lagged behind the US and Asia Pacific in the global crypto market.
The favourable regulation and renewed optimism among traders have driven Europe’s crypto market resurgence. The report suggests that Europe’s bet on crypto regulation is beginning to pay off, attracting investment and bolstering its standing in the global crypto arena.
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