Substantial Trading Volume Concentrated in a Few Exchanges
Despite the presence of more than 15 platforms for euro-denominated trading with cryptocurrency, only a handful of exchanges attract significant trading volume. Bitvavo, Kraken, Coinbase, Bitstamp, and Binance collectively dominate the landscape, accounting for over 98% of the total trades.
Kraken and Binance Lead in Cumulative Volume
According to research from Kaiko and Bitvavo, crypto exchange Kraken recorded €25 billion in cumulative volume in 2023, followed by Binance. Meanwhile, Bitvavo witnessed cumulative euro volumes exceeding €34 billion, accounting for over 50% in December 2023.
Bitcoin Dominates Euro Trading Volume
Euro traders in 2023 showed a strong preference for Bitcoin (BTC), which experienced substantial gains in Q4. Bitcoin transactions in Europe surpassed €37 billion in trading volume, overshadowing Ethereum (ETH) (€15 billion) and XRP (€9.5 billion). The top 10 assets traded in Europe aligned closely with global and U.S. trends in trading activity.
Correlation Between Euro Volume and Trading Pairs
The number of euro-denominated trading pairs listed by each exchange correlates with their euro volume. Kraken and Bitvavo have over 200 euro pairs each, solidifying their positions with the highest euro-denominated volume. In contrast, global exchanges like Bitflyer and Bybit focus on APAC regions.
Europe’s Crypto Trading Trend Primed for Reversal
While Europe has historically lagged behind the U.S. and APAC in crypto trading and investment, the trend is expected to reverse in 2024. The region is witnessing a surge in exchanges establishing headquarters, supported by a well-defined regulatory regime.
Hot Take: Europe’s Crypto Trading Landscape Evolving
Europe’s crypto trading scene is experiencing a shift, with a few dominant exchanges capturing the majority of euro-denominated trading volume. Bitcoin remains the top choice for European traders, outpacing other cryptocurrencies. The correlation between the number of trading pairs and euro volume is evident, with Kraken and Bitvavo leading the way. As Europe strengthens its regulatory framework, the region is set to attract more exchanges and become a significant player in the global crypto market.
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