Markets
Surge in Euro Stablecoins' Market Cap Approaches $500M as EUR/USD Matches Bitcoin's Gains
The total market capitalization of Euro-pegged stablecoins has increased by 44%, led by Circle's EURC, which has seen a 138% uptick.
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Highlights:
- The Euro to U.S. dollar exchange rate has increased by 12.88% in the first half of the year, outpacing notable indices such as Nasdaq and S&P 500, closely trailing Bitcoin’s 14.8% increase.
- The aggregated market cap of euro-pegged stablecoins has surged by 44% to reach $480 million, with Circle’s EURC stablecoin at the forefront, witnessing a remarkable 138% growth.
- Despite this significant growth, the total market cap of euro-pegged stablecoins constitutes less than 1% of dollar-pegged counterparts.
The EUR/USD exchange rate, renowned as the most liquid foreign exchange pair, has recently surged from 1.0354 to nearly 1.17, marking its peak since September 2021. This upward trend is attributed to a decline in the correlation between exchange rates and the differences in interest rates between the Fed and the ECB, alongside a general shift away from the U.S. dollar.
The market value of dollar-pegged stablecoins stands at approximately $254.88 billion, far surpassing that of their euro-pegged alternatives. The favorable euro valuation has undoubtedly amplified interest in stablecoins tied to it.
