Euro Stablecoins Soar Under MiCA, But Hidden Liquidity Imbalances Threaten Traders’ Profits

Europe’s crypto markets are booming with EUR-backed stablecoins, but traders may not notice tighter spreads if their orders hit the wrong exchange.

DECTA’s 2025 report shows the euro stablecoin market cap grew 102% post-MiCA, reversing a 48% pre-MiCA decline. Aggregated monthly EUR-backed transaction volume surged from $383 million to $3.832 billion in 12 months after the regulation took effect.

Kaiko’s October 2024 data reveals MiCA-compliant EURC/EURCV stablecoins captured 67% market share three months post-MiCA, though weekly trading volumes remained below $100 million.

By November 2024, MiCA-compliant stablecoins (EURC, EURCV, EURI) controlled 91% of the market via regulatory compliance-driven delistings. BTC-EUR trading volume’s global share rose from 3.6% to nearly 10% in 2024, with 85%+ volume concentrated on Bitvavo, Kraken, Coinbase, and Binance.

Kaiko’s spread data highlights stark disparities: 30-day average bid-ask spreads range from 2.6 bps (Bitvavo) to over 20 bps (One Trading).

BTC-EUR ranked second-deepest BTC-fiat market in Kaiko’s sample at 758 BTC daily depth, double BTC-GBP’s 350 BTC. Stablecoin-to-euro pairs constitute 50% of euro volume on Kraken, 30% on Coinbase, but only 4% on Binance and 2% on Bitvavo.

⚠️ LEGAL DISCLAIMER: This article is for informational purposes only and does not constitute financial or investment advice.