Circle’s Euro Coin market cap rises to $198 million
Circle’s euro-pegged stablecoin, Euro Coin (EURC), has seen its market capitalisation grow 136% year-to-date, reaching $198 million by mid-April.
The surge follows a weakening U.S. dollar and rising trade tensions, which have increased interest in euro-denominated assets.
Alex Obchakevich, founder of Obchakevich Research, noted that demand for the euro has grown significantly and has carried over into the stablecoin space.
The euro has risen 2.2% against the dollar since January, reaching $1.13, its highest level since February 2022.
The rise of EURC (CRYPTO:EURC) is also visible in decentralised finance activity.
In April, Aave (CRYPTO:AAVE) recorded €2.3 million in Euro Coin inflows.
EURC is supported on Ethereum (CRYPTO:ETH), Avalanche (CRYPTO:AVAX), Base, Solana (CRYPTO:SOL), and Stellar (CRYPTO:XLM), helping to expand its usage across multiple blockchain ecosystems.
Circle’s compliance with the EU’s Markets in Crypto-Assets (MiCA) regulation has helped solidify EURC’s position in the market.
According to Circle’s EU policy director Patrick Hansen, EURC now leads the euro-backed stablecoin category by market capitalisation.
The broader stablecoin market is still dominated by Tether’s USDT (CRYPTO:USDT), which has a $144 billion market cap, followed by Circle’s USDC (CRYPTO:USDC) at $60 billion.
However, USDt has faced setbacks in Europe due to its non-compliance with MiCA.
Earlier this year, Binance removed USDT for users in the European Economic Area in order to meet new regulatory standards.
Obchakevich expects EURC could reach €400 million by the end of 2025, citing greater regulatory clarity and rising demand for euro-denominated digital assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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