The US dollar remains the dominant currency in crypto trading, but new data from Chainalysis suggests the euro is making significant inroads. The 2026 Geography of Crypto report highlights that Europe’s currency is gaining share across Western Europe, driven by MiCA regulation, fiscal concerns, and rapid stablecoin adoption.
Western Europe’s crypto economy grew 1.2% between July 2025 and June 2026, reaching $2.08 trillion. The EU expanded 2.2%, while the UK shrank 8%, maintaining the largest single market at 424.5 billion. Germany, France, and the Netherlands followed with $288.8 billion, $215.8 billion, and $207.8 billion, respectively.
The euro now accounts for 11.8% of crypto volume across 33 major currencies, narrowing the gap with the dollar’s 14.5% benchmark in global FX markets. This rise aligns with MiCA’s full rollout, which standardized regulations and granted passporting rights across the EU.
EUR/USD movements significantly impact European crypto investors, who face dual exposures to token prices and exchange rates. Chainalysis found that as eurozone government yields rose against US yields, euro-denominated trading in Bitcoin and tokenized gold increased relative to dollar trading.
Stablecoins are pivotal in this shift. Holdings across Western Europe grew 131%, lifting the region’s share of world balances from 3.4% to 5.1%. However, most supply remains dollar-backed, keeping Europe tied to US liquidity. Banks are pushing for euro-backed stablecoins to reduce this dependence.
The dollar still leads in crypto, but the euro is carving out its own path through regulated EUR pairs, cross-border exchanges, and euro-backed stablecoins, a trend that is widening each year.