Market Consolidation in the Euro Zone
Despite a diverse array of platforms available for cryptocurrency trading in euros, data indicates a significant market consolidation. Research from Kaiko highlights that a mere quintet of crypto exchanges—Bitvavo, Kraken, Coinbase, Bitstamp, and Binance—are in command of a whopping 98% of the euro trade volume.
The Big Players in Euro Crypto Trading
The dominance of these exchanges is stark. Bitvavo and Kraken lead the pack, with Bitvavo alone accounting for over half of the euro trading volume in December 2023. Kraken’s €25 billion in cumulative volume for the year is impressive, yet it trails behind Bitvavo’s €34 billion. Binance, despite losing some ground, still remains a significant player alongside Coinbase and Bitstamp.
Bitcoin Reigns Supreme in Europe
The preference for Bitcoin among euro traders is evident, with transaction volumes soaring to €37 billion in the last quarter of 2023. This figure dwarfs that of Ethereum’s €15 billion and XRP’s €9.5 billion. The popularity of these assets in Europe mirrors the global and U.S. trading trends.
Trading Pair Correlation with Volume
Analysts note a correlation between the number of euro-denominated trading pairs and the volume traded. Exchanges with more pairs, such as Kraken and Bitvavo with over 200 each, naturally see more volume. This contrasts with global exchanges that often focus on other regions, thereby offering fewer euro pairs and attracting less euro volume.
Europe’s Crypto Landscape on the Cusp of Change
Historically lagging behind the U.S. and APAC in crypto trade, Europe seems poised for a shift. The surge in exchanges setting up headquarters within Europe, coupled with clear regulatory frameworks, suggests a trend reversal in the coming year. Kaiko’s analysis concludes that Europe’s crypto trading landscape is primed for significant growth in 2024.
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