The market cap of Circle’s Euro Coin (EURC), a euro-pegged stablecoin, is experiencing rapid growth as ongoing trade tensions push the US dollar’s price lower. According to Alex Obchakevich, founder of Obchakevich Research, “In recent weeks, interest in the euro has grown tremendously” and this trend is reflected in the increasing popularity of the Circle EURC stablecoin.
Recently, the euro has risen by 2.2%, reaching its highest price since February 2022 at $1.13. Moreover, decentralized finance (DeFi) protocol Aave reported an influx of €2.3 million in Euro Coin in April alone, indicating a substantial surge in EURC’s capitalization.
Data from CoinMarketCap reveals that EURC’s market cap has skyrocketed from under $84 million at the end of 2024 to over $198 million as of mid-April, marking a remarkable 136% increase year-to-date.
The Euro’s Strength in a Challenging Economic Climate
The euro’s recent ascent is occurring alongside a noticeable weakening of the US dollar, triggered by rising trade tensions. Since December 31, 2024, the dollar has depreciated from 0.97 euro to 0.88 euro, reflecting a 9.3% decrease against the euro. Analysts predict that the US and European Union may reach a trade deal aimed at stabilizing the euro around $1.11 to the dollar, yet many anticipate that the Euro Coin will continue to flourish through integration with various payment systems and blockchains.
“EURC will continue to grow through integration with various payment systems and blockchains.”
After its launch on Ethereum, Euro Coin has also expanded to Avalanche, Base, Stellar, Sonic, and Solana, which has contributed to its growing supply. Obchakevich forecasts a rise in EURC to 400 million euros by the year’s end, influenced by regulatory support from MiCa and ongoing economic challenges.
The Regulatory Environment Favoring Circle
Circle, the issuer of Euro Coin and USDC, is benefiting from its strategy that aligns with the regulatory landscape. Circle’s products are among the leading euro and US dollar-pegged stablecoins compliant with the European Union’s Markets in Crypto-Assets (MiCA) regulation.
Currently, Tether is the dominant player in the stablecoin market, with its USDt stablecoin boasting a market cap of $144 billion, which significantly overshadows USDC’s $60 billion capitalization. Despite this vast difference, many expect this gap to diminish as USDt faces increasing restrictions in the European market due to non-compliance with MiCA regulations. This concern was underscored when Binance delisted USDt for European Economic Area-based users in March, as part of its compliance efforts.
As we witness the evolution of stablecoins in this dynamic regulatory landscape, the future looks promising for Euro Coin. The interplay of market forces and regulatory developments will undoubtedly shape the path ahead for EURC and similar digital assets.
