Analysis: MiCA Framework Fuels Growth in European Crypto Market as U.S. Retail Trading Slows
According to data from Paybis co-founder Konstantins Vasilenko, in the first quarter of 2025 following the implementation of the MiCA regulations, trading volume from EU clients increased by 70% quarter-on-quarter. During the same period, retail trading activity in the US market showed a downward trend. Kaiko estimates that currently, only 18% of spot trading volume on compliant US exchanges comes from retail investors, down from 40% in 2021. Robinhood’s crypto trading volume also dropped by 35% in the first quarter of 2025.
Vasilenko noted that MiCA opened its licensing window on January 1, 2025, and the newly injected capital is larger in scale and more purpose-driven. The MiCA framework introduces a unified licensing regime for all EU member states and imposes strict requirements on stablecoins, including 1:1 reserves, audits, and asset segregation, thereby boosting investor confidence.
In contrast, ongoing regulatory uncertainty in the US has hindered market development. Although US President Trump and members of his administration have made pro-crypto statements, comprehensive federal crypto legislation has yet to be introduced. (Cointelegraph)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
S&P rewrites stock classification rules! $375 billions in funds may be forced to rebalance, major reshuffle for growth and value stocks
After S&P Dow Jones Indices adopts new stock classification rules, growth stocks and value stocks will undergo a reshuffling.
Bitcoin (BTC) Tanks Toward $80K, Ripple (XRP) Loses Key Support: Weekend Watch
WLD Price Prediction: Worldcoin Eyes $12 as Cloudflare Partnership Advances
Last week, retail investors made a "record-breaking" dip buy of US chip leveraged ETFs, but this week they plummeted.
Last week, retail investors poured $6.1 billion into 3x leveraged chip ETFs, but suffered a 20.5% single-day plunge this Thursday, almost perfectly coinciding with the start of the rapid downturn. The cumulative decline in October has exceeded 43%, far surpassing the 15.9% loss of non-leveraged products during the same period. The root cause lies in the market’s skepticism toward AI investment returns. The most significant uncertainty is whether aggressive spending by tech giants will actually deliver on profit expectations, while the use of leverage has exponentially magnified the cost of this misjudgment.
Crypto prices
More
