Euro-denominated stablecoins have seen their monthly spot trading volume halve from nearly $200 million in early 2024 to about $100 million this year, according to data from Kaiko. Despite the EU's MiCA regulation supporting compliant European issuers, these stablecoins have struggled to gain traction, with traders favoring dollar-denominated tokens. The euro versions are seen as adding currency conversion friction without significant benefits. Tether stopped minting its euro-denominated USDT (EURT) in 2024.
Currently, euro stablecoins' monthly trading volume is between $1.5 and $2 billion, significantly lower than the over $1 trillion monthly volume of dollar stablecoins. Nonetheless, some institutions remain optimistic, with S&P Global predicting market growth from €650 million to €1.1 billion by 2030. Additionally, twelve European banks, including UniCredit and BNP Paribas, plan to launch a euro-denominated stablecoin by year-end.
Euro Stablecoin Trading Volume Drops 50% Amid Dollar Preference
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