Despite the availability of more than 15 platforms that facilitate euro trading with cryptocurrencies, only a few attract substantial trading volume, Kaiko says.
Cryptocurrency exchanges Bitvavo, Kraken, Coinbase, Bitstamp, and Binance collectively dominate the euro-denominated trading volume landscape, accounting for more than 98% of total transactions.
According to recent research by Kaiko in collaboration with Bitvavo, cryptocurrency exchange Kraken recorded a cumulative volume of €25 billion in 2023, followed by Binance, which once held a significant market share. Cryptocurrency exchange Bitvavo recorded cumulative euro volumes exceeding €34 billion, up more than 50% in December 2023, according to the report.
Monthly trading volume denominated in euros | Source: Kaiko
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In 2023, European traders demonstrated a strong preference for Bitcoin (BTC), which recorded substantial gains in the fourth quarter of 2023. According to analysts, Bitcoin transactions in Europe exceeded €37 billion in trading volume, putting shadow Ethereum (ETH) (15 billion euros) and XRP. (9.5 billion euros). The top 10 assets traded in Europe aligned closely with global and US trends in trading activity, Kaiko says.
Top euro-linked assets by trading volume | Source: Kaiko
The correlation between the amount of euro volume and the number of euro-denominated trading pairs listed by each exchange is clear, Kaiko analysts say, pointing out that both Kraken and Bitvavo boast over 200 euro pairs, consolidating their positions with the highest euro-denominated euro pairs. volume. In contrast, global exchanges like Bitflyer and Bybit focus on regions like APAC, contributing to the diverse euro-denominated trading landscape.
While Europe has historically lagged behind the US and APAC in cryptocurrency trading and investing, the trend is “poised for a reversal” in 2024 as the region is seeing a surge in exchanges establishing headquarters, supported by a well-defined regulatory regime, Kaiko concludes.
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