Circle's euro-backed stablecoin EURC has surged to an unprecedented supply level as U.S. trade tensions and a weakening dollar drive increased demand for euro-denominated digital assets.
What to Know:
- EURC supply jumped 43% in the past month to reach $246 million as investors seek alternatives to dollar-based cryptocurrencies
- The stablecoin's growth accelerated on multiple blockchains, with Solana seeing the fastest expansion at 75%
- Regulatory changes and concerns about potential Trump-era tariffs have contributed to the shift toward euro-denominated digital assets
Euro Stablecoin Gains Momentum as Dollar Faces Pressure
The supply of EURC tokens grew dramatically over the past month, reaching 217 million tokens valued at $246 million, according to data from RWA.xyz.
This positions the stablecoin above Paxos' Global Dollar (USDG) but still below Ripple's RLUSD in market capitalization rankings.
Most EURC tokens currently circulate on the Ethereum network, where supply increased 35% in a month to 112 million tokens. Solana experienced the most rapid expansion with a 75% growth to 70 million tokens. Base, Coinbase's Ethereum layer-2 solution, also saw significant growth with a 30% increase to 30 million in EURC supply.
On-chain activity for the token has similarly accelerated. Active addresses rose 66% to 22,000, while monthly transfer volume exceeded $2.5 billion, representing a 47% increase in just one month, RWA.xyz data shows.
EURC currently holds the position as the largest euro stablecoin available, though it remains substantially smaller than its dollar-based counterparts. Dollar-pegged stablecoins constitute 99% of the rapidly expanding stablecoin market, with Circle's $58 billion USDC and Tether's $143 billion USDT leading the sector.
The accelerating adoption of EURC likely signals growing demand for diversification into euro-denominated digital assets. This trend comes as global investors navigate increasing economic uncertainties in the United States, particularly regarding the potential implementation of wide-scale tariffs under the Trump administration.
Regulatory Shifts and Economic Concerns Drive Adoption
The U.S. dollar has weakened 9% against the euro since the beginning of the year, creating additional motivation for cryptocurrency users to explore alternatives.
Xapo Bank, a Gibraltar-based Bitcoin-focused financial services firm, reported a significant shift in customer behavior. "This rapid increase in volume came amidst mounting concern about the future of U.S. dollar primacy and the threat of a U.S. recession as markets braced for Trump's planned 'Liberation Day' in April," the firm stated in its Monday report.
The bank noted a 50% increase in euro deposit volumes during the first quarter, significantly outpacing the 20% rise in USDC stablecoin deposits. During the same period, deposits in USDT declined by more than 13%.
Further evidence of this trend appeared in stablecoin swap volumes between foreign currency pairs on Ethereum-based decentralized exchanges, which reached multi-year highs last week. These transactions were predominantly in the EUR-U.S. dollar trading pair, according to Blockworks data.
EURC has also benefited from Tether's withdrawal of its euro-backed stablecoin (EURT) as European Union-wide MiCA regulations take effect this year.
Several exchanges, including Binance at the end of March, have delisted USDT for EU users to comply with these new regulatory requirements.
Outlook for Euro Stablecoins
As economic uncertainties persist and regulatory environments evolve, EURC's growth trajectory demonstrates the increasing demand for diversified cryptocurrency options beyond dollar-denominated assets. While still representing a small fraction of the overall stablecoin market, euro-backed digital currencies appear positioned for continued expansion as investors seek alternatives amid dollar volatility.