The European stablecoin market has experienced significant growth, with the market capitalization of euro-pegged stablecoins increasing by 102% in the 12 months following the implementation of the Markets in Crypto-Assets (MiCA) regulations in June 2024. According to the “Euro Stablecoin Trends Report 2025” by DECTA, the combined market capitalization of these stablecoins reached $500 million in May 2025, with the aggregate monthly transaction volume increasing from $383 million to $3.832 billion.
The Rise of Euro Stablecoins
The MiCA regulations have played a crucial role in the growth of the euro stablecoin market, as they provide a clear framework for the issuance and trading of these assets. Under MiCA, stablecoins that reference a single fiat currency, such as the euro, are classified as “e-money tokens,” while those tied to a basket of assets are classified as “asset-linked tokens.” This regulatory clarity has helped to increase confidence in the market, leading to increased adoption and usage of euro stablecoins.
The growth of the euro stablecoin market has been driven in part by the increased demand for stable and reliable payment systems. Euro stablecoins offer a low-risk alternative to traditional fiat currencies, allowing users to transfer value quickly and efficiently. The increased market capitalization and transaction volume of euro stablecoins demonstrate the growing importance of these assets in the European financial landscape.
Concentration of Liquidity
Despite the growth of the euro stablecoin market, liquidity remains concentrated in a few large trading venues. According to a report by Kaiko, the top four trading venues – Bitvavo, Kraken, Coinbase, and Binance – account for over 85% of total euro-denominated trading volume. This concentration of liquidity can lead to tighter spreads and deeper books on these venues, making it easier for traders to buy and sell assets.
However, the concentration of liquidity also raises concerns about the overall health of the market. If liquidity is concentrated in a few large venues, it can create a situation where smaller venues struggle to compete, leading to a lack of diversity and innovation in the market. Furthermore, if one of these large venues experiences technical difficulties or is subject to regulatory scrutiny, it can have a significant impact on the overall market.
Impact on BTC-EUR and ETH-EUR Liquidity
The growth of the euro stablecoin market has had a positive impact on the liquidity of BTC-EUR and ETH-EUR trading pairs. According to Kaiko, the 30-day average bid-ask spreads for top tokens ranged from over 20 basis points on One Trading to 2.6 basis points on Bitvavo and 3 basis points on Kraken. The depth of the market has also improved, with BTC-EUR being the second-deepest BTC fiat market in Kaiko’s sample, with an average daily depth of 758 BTC.
However, it is essential to note that the improvement in liquidity is not solely due to the growth of the euro stablecoin market. Other factors, such as the increased adoption of cryptocurrency trading and the development of new trading platforms, have also contributed to the improved liquidity. Additionally, the concentration of liquidity in a few large venues can create a situation where the overall market is more susceptible to volatility and manipulation.
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