Circle’s euro-backed stablecoin, EURC, has surged to an impressive $246 million supply, marking a 43% increase over the past month due to a growing demand for euro-denominated digital assets. Factors contributing to this spike include rising concerns over the stability of the U.S. dollar and the impact of tariffs stemming from the Trump administration, as reported by Xapo Bank.
- Key Insights:
- EURC’s supply grew to 217 million tokens.
- Noteworthy expansion on the Ethereum network, boasting 35% growth with 112 million tokens.
- A rapid 75% increase in Solana’s EURC supply, currently at 70 million tokens.
The demand for EURC is likely driven by Tether’s exit from the euro stablecoin sector, alongside various exchanges, such as Binance, removing USDT for EU traders, further boosting interest in EURC.
Additionally, the overall activity surrounding EURC has amplified, with active addresses jumping 66% to 22,000 and monthly transfer volumes exceeding $2.5 billion, a notable 47% increase.
EURC stands as the leading euro stablecoin but still trails far behind dollar-pegged counterparts, which encompass 99% of the stablecoin market. Despite this, the uptick in EURC’s growth suggests an increasing shift towards diversification into euro-denominated digital currencies, especially amid economic uncertainties regarding the U.S. dollar.
Xapo Bank has cited a 50% rise in euro deposit volumes in the first quarter, significantly outpacing the 20% growth of USDC deposits. Meanwhile, USDT deposits have declined over 13%. This trend reflects an eagerness among investors for alternative stablecoin assets as concerns over the dollar’s future become more palpable.
As the market evolves, stablecoin liquidity and participation between foreign currency pairs on Ethereum’s decentralized exchanges reached new heights, especially with a rise in EUR-U.S. dollar swaps. This growth coincides with Tether’s withdrawal of its euro-based stablecoin, EURT, due to impending EU regulations regarding stablecoins, impacting exchanges like Binance and their operational policies.
