MiCA drives the euro stablecoin market to take off: market capitalization doubles within a year

Since the EU “Markets in Crypto-Assets Regulation” (MiCA) took effect in June 2024, the euro stablecoin market has experienced a dramatic revival. After contracting by 48% in the previous year, the total market capitalization of euro stablecoins doubled over the following 12 months, marking an important turning point for Europe’s digital asset market. According to the “2025 Euro Stablecoin Trends Report” published by London-based payment processor Decta, this growth reflects the profound impact of regulatory clarity on market confidence.

From Decline to Revival: How MiCA Activates the Market

The resurgence of the euro stablecoin market is no coincidence. The MiCA framework provides issuers and service providers with a clear regulatory pathway, addressing previous legal uncertainties that troubled the market. These rules particularly emphasize standardization of reserve requirements and issuer responsibilities, thereby boosting consumer confidence in euro stablecoins.

Data shows that the market cap of euro stablecoins recovered from a historic low before June 2024 to approximately $500 million in May 2025, further rising to $680 million in early 2026. This sustained recovery clearly demonstrates the effectiveness of the MiCA framework as a market driver. In contrast, the global stablecoin market grew by only 26%, further highlighting Europe’s regulatory system’s unique incentives for euro stablecoins.

Major Winners Emerge: EURS, EURC, and EURCV Lead

The distribution of market growth benefits is uneven. EURS, issued by Maltese company Stasis, performed the best, with an astonishing 644% increase in market cap in the second half of 2025, reaching $283.9 million. This growth far exceeded the market average, reflecting high investor confidence in the project’s regulatory compliance under the MiCA framework.

EURC from Circle Internet and EURCV issued by SG-Forge, a subsidiary of Societe Generale, also made significant progress. The performance of these two projects indicates that both international payment companies and traditional financial institutions are actively seizing opportunities in the euro stablecoin market. Their success signals a trend toward diversification among different types of issuers within the euro stablecoin ecosystem.

On-Chain Activity Surges: Trading Volume Nearly Ninefold

Another key indicator of market growth is the explosive increase in on-chain trading activity. Monthly trading volume of euro stablecoins surged from $383 million before MiCA implementation to nearly nine times that amount, reaching $3.83 billion. This data change reflects a significant increase in market participation.

EURC and EURCV were the most active during this growth, with trading volumes increasing by 1,139% and 343%, respectively. These increases mainly stem from the expansion of use cases such as payment settlements, fiat-on-ramps, and digital asset trading. This indicates that euro stablecoins are gradually evolving from investment tools into liquidity tools for practical applications.

European Consumers Wake Up: Regional Search Interest Soars

The rising awareness and interest among consumers further confirm the vitality of the euro stablecoin market. Decta’s research found that search interest for euro stablecoins across the EU increased significantly. Finland saw a 400% year-over-year increase, Italy 313.3%, and markets like Cyprus and Slovakia also recorded steady growth. This broad geographic coverage indicates that the appeal of euro stablecoins has broken through traditional financial centers and reached all corners of Europe.

Competition with USD Stablecoins: Gap Still Large but Narrowing

Although the euro stablecoin market has achieved remarkable growth, the scale gap compared to the USD stablecoin market remains substantial. The total USD stablecoin market size reaches $30 billion, with Tether’s USDT dominating and Circle Internet’s USDC ranking second. In comparison, the $680 million euro stablecoin market cap is only 2.3% of the USD stablecoin market.

However, the asymmetry in growth momentum sends a signal. The 100% growth rate of euro stablecoins contrasts sharply with the 26% growth of USD stablecoins. In the currency exchange between USD and EUR (with a reference rate of 240 USD to 1 euro), Europe is building its own stablecoin ecosystem, which is significant for long-term diversification in digital finance.

Outlook: MiCA’s Legacy and Future Pathways

The data in this report clearly shows that a clear regulatory framework can serve as a vital catalyst for innovation markets. MiCA has not only reversed the downturn in the euro stablecoin market but also created a relatively fair and regulated competitive environment. For other jurisdictions, the EU’s experiment offers valuable lessons.

As more users, projects, and institutions participate, the euro stablecoin market is expected to continue its growth trajectory. While surpassing the scale of the USD stablecoin market will take time, the current momentum indicates that a truly diversified global stablecoin ecosystem is gradually taking shape.