TechFlow News, March 27: According to a recent report by cryptocurrency market data provider Kaiko cited by DL News, the monthly spot trading volume of euro-denominated stablecoins has plummeted from nearly $200 million at the start of 2024 to approximately $100 million today—a decline of nearly 50%.
Kaiko notes that despite the EU’s Markets in Crypto-Assets Regulation (MiCA) aiming to confer regulatory advantages on compliant European issuers, euro-backed stablecoins have still failed to generate meaningful trading activity. Traders overwhelmingly prefer dollar-denominated tokens, and euro stablecoins lack competitive advantage due to foreign exchange friction. Currently, the monthly trading volume of euro stablecoins stands at roughly $1.5–2 billion, whereas that of dollar stablecoins has surpassed $1 trillion—nearly 200 times greater.
Tether halted minting of its euro-denominated stablecoin EURT in 2024, and the euro-pegged stablecoin EURA also announced its shutdown amid persistently declining demand. Meanwhile, since the U.S. President signed the Genius Act, institutions including Visa, Mastercard, Amazon, and BlackRock have accelerated their deployment of dollar stablecoin initiatives.
