With the exponential rise of cryptocurrencies, global trading volumes have also gone up drastically as a result of expanding crypto markets. Today crypto holders are able to do more things with their virtual coins, like buy property, donate to political campaigns, shop online, spend on vacations and play at an online casino of their choosing.Â
According to experts from Crypto Casino, these gambling platforms allow players to bet with various coins online and offer a huge variety of games. Similarly, when shopping online, several coins are now accepted, which has led to more consumers using digital currency to buy goods and services.Â
When it comes to the key players who have been leading this rise in crypto trading volumes, Europe has stood out as the number one region.
In this article, we will find out the reasons behind the surge in crypto trading volumes across Europe and the future roadmap of crypto currencies.Â
Global Crypto Market Overview
The first thing about the growth of the global crypto market is that it has been substantial, as trading volumes stood at approximately $57 trillion worldwide in 2022. For 2024, trading volumes are expected to surpass the 2022 figure by almost 90%, as they are projected to reach $108 trillion.
What has made experts project this figure is that there has been a lot of interest in cryptocurrencies from institutional investors. More large corporations and financial institutions are starting to see the potential that crypto assets have, which has encouraged them to trade these at higher volumes.
Advancements in the technologies that crypto relies on have also played an essential part in increased crypto trading volumes. Some of these advancements include the development of trading platforms that are more efficient and secure, which has made it easier for institutions and individuals to access the crypto market. There have also been innovations in blockchain technologies, which are used to host different crypto assets.
Europe’s Dominance
Now that we know how the crypto market in its entirety is expanding and what is contributing to this expansion, let us see how Europe has become the leading region globally when it comes to cryptocurrency trading, as its projected trading volumes are expected to reach a remarkable $40.5 trillion.
What has made experts believe that Europe will reach this figure is the region’s substantial annual growth rate, which reflects this area’s rapidly evolving and dynamic financial landscape. Many factors have played a role in shaping this region’s financial landscape, which has resulted in its becoming a leader in the crypto market.
The first of these factors is that Europe’s regulatory framework has been remarkably progressive, which has supported the rise of cryptocurrency innovations within its borders. With the European Union implementing comprehensive regulations, crypto businesses and investors have been able to buy, trade, and transact in crypto freely due to the security and clarity that the EU’s regulatory framework provides.
Having regulatory certainty has also created an environment that is conducive to crypto trading, which has helped Europe attract a lot of participation and investment in its crypto space from both retail and institutional investors.
Secondly, what has resulted in Europe becoming a global leader in the crypto space is its highly developed financial infrastructure. This infrastructure is why some of the world’s top crypto exchanges and financial institutions are based in this region.
Many of Europe’s leading financial institutions have embraced cryptocurrencies by trading and integrating them into their operations. Integrating crypto into their operation has been pivotal in allowing these institutions to facilitate efficient and seamless trading experiences, which has boosted trading volumes.
Regulatory Framework
Europe’s comprehensive regulatory framework has been crucial in this region’s rise to becoming a leader in the crypto market globally. The introduction of Markets in Crypto-Assets (MiCA) regulations, which the EU put partially into effect on June 30, has played an important role in bolstering this framework. That’s because MiCA regulations have been designed to create a robust regulatory environment for virtual assets, which will provide security and clarity to both service providers and investors. These regulations are the first set of laws that the EU will use to create uniform rules for the crypto market to ensure consumer protection and financial stability without endangering innovation.
A key part of these MiCA regulations is the comprehensive rules they have on stablecoins that are designed to mitigate risks such as the potential misuse of these assets and to ensure their stability. These rules include more transparency and reserve asset requirements that the EU is hoping will keep stablecoins stable and increase their trustworthiness, which will encourage their use in financial systems across this region.
Also, the EU has more regulations coming that will be implemented in December that are meant for crypto service providers. These new laws will cover subjects like operational standards, consumer protection measures, and licensing requirements.
Comparative Analysis
Europe’s trading volume, which is projected to reach $40.5 trillion this year, will make this region account for 37.32% of all crypto transactions worldwide. This will make it surpass Asia, which is expected to account for 36.17% of global crypto transactions as its trading volume is expected to reach $39.3 trillion. Reaching this figure will also take it way further than North America, which is expected to be trailing behind Asia, Africa, and South America.
What has contributed to North America being projected to trail behind all these regions, even with its significant presence in the crypto space, is that it’s seeing a decline in trading volumes. That’s because even though it peaked at $13.6 trillion last year, experts are expecting it to see trading volumes decline by almost 50% and reach $7.7 trillion.
Africa, on the other hand, is expected to see an almost fivefold increase from its 2023 numbers, where crypto trading numbers peaked at $2.7 trillion compared to the $10.8 trillion the region is projected to reach this year. One of the factors that have helped Africa to scale its crypto trading volumes so quickly despite varying regulatory stances in the region is that crypto has offered many people who didn’t have access to financial services an alternative.
Another region that has expanded quickly, which sits behind Africa, is South America, which is expected to more than double its 2023 trading volume, which was at $3.03 trillion, to reach $7.82 trillion this year.
Conclusion
As we conclude, we can now confidently say we know the major factors that have contributed to the astronomic rise that crypto trading volumes are experiencing all over the world. We’ve also seen what has made Europe claim its position as a leader in the crypto market due to its impressive projected trading volume.
Europe taking the top spot in crypto trading volumes is going to be great for the crypto market’s future too, as this region’s advancements will set a benchmark that other regions can follow to improve their participation.
