The cryptocurrency market in Europe will reach nearly $18.5 billion by the end of this decade, growing by around 16 percent per year over the next five years. Peer-to-peer payments are expected to expand the most, while Germany will remain the largest market. These are the key findings of a study by TechSciResearch.com, which forecasts the development of the European crypto-asset market until 2030.

European crypto market forecast

In 2024, the European cryptocurrency market exceeded $10 billion. By the end of 2025, it is expected to surpass $11.5 billion, and by 2030, it should approach $18.5 billion. The annual growth rate is forecast to average about 16 percent in the remaining five years. [1]

Drivers of adoption

Growth in Europe is supported by several factors:

- Wider acceptance of bitcoin as both payment and investment

- Ongoing blockchain innovations

- A stronger institutional framework

- The overall size and potential of the European market

MiCA regulation and investor interest

The gradual implementation of the Markets in Crypto-Assets (MiCA) regulation is seen as a major driver. It increases transparency and credibility, which attract institutional investors. MiCA may also boost retail interest, especially after recent double-digit inflation across Europe, the highest three or even four decades, pushed many savers to look for new ways to protect their money.

Challenges for the market

Despite the positive outlook, challenges remain. Taxation and compliance are complicated by differing national rules across the Union. While MiCA aims to unify the framework, tax policies stay decentralized, with each EU country applying its own rules on crypto transactions, capital gains, and reporting. Many investors and businesses struggle with inconsistent tax treatment, as some countries impose high capital gains taxes, while others offer more crypto-friendly policies.

Public awareness and adoption remain limited. Many consumers are uncertain about how cryptocurrencies work, their risks, and their benefits. Misconceptions about volatility and regulation add to skepticism, while many businesses hesitate to accept crypto due to price fluctuations, compliance costs, and integration difficulties, the study concludes.

Sources:

[1] https://www.techsciresearch.com/report/europe-cryptocurrency-market/4970.html