USDC Leads European Stablecoin Boom Post-MiCA as Dollar Dominance Persists

European stablecoin adoption has rebounded sharply after initial regulatory uncertainty surrounding the Markets in Crypto-Assets (MiCA) framework. The region now commands 34% of global stablecoin activity, nearly doubling its 16% share from 2024. This growth positions Europe as the second-largest stablecoin market, though still trailing North America's 42% dominance.

The dollar's hegemony remains unchallenged in crypto's borderless economy - 99.8% of stablecoin supply remains USD-denominated. European users increasingly leverage dollar-pegged tokens like USDC for both trading and payments, particularly following its full regulatory approval.

Market diversification continues apace since the 2022 downturn. Asia's share has collapsed from 33% to just 12%, while North America strengthened its position from 38% to 42%. This geographic redistribution coincides with specialized stablecoin use cases emerging across different economic regions.