The euro-backed stablecoin EURC has reached an all-time high supply of $246 million, driven by growing concerns over US dollar stability and the need for diversification among investors.
Circle’s EURC Stablecoin Surges 43% to Record Supply as Dollar Troubles Fuel Demand
The euro-backed stablecoin, EURC, has seen significant growth in the past month, increasing by 43% to a record $246 million supply. This surge can be attributed to mounting concerns over U.S. dollar stability and ‘Trump-era tariff fears’ driving crypto users toward alternatives.
The Weakening Dollar and Growing Demand for Euro-Denominated Digital Assets
The U.S. dollar has weakened 9% against the euro year-to-date, as tariff uncertainty weighed on the greenback. This weakening has led to a growing demand for euro-denominated digital assets, with EURC experiencing an uptick in on-chain activity.
The United States dollar (USD) is the official currency of the United States.
It was established in 1792 by the Coinage Act, which declared that the dollar would be divided into 100 smaller units called cents.
The first paper money was introduced in 1862 to finance the Civil War.
Today, the US dollar is one of the most widely traded and recognized currencies globally, used as a reserve currency by many countries.
Its value is determined by supply and demand on foreign exchange markets.
EURC supply across blockchains
EURC‘s growth was also fueled by ‘Tether‘s exit from the euro stablecoin market’ and exchanges including Binance delisting USDT for EU users. The token now has a record $246 million supply, ranking above Paxos‘ Global Dollar (USDG) and below Ripple‘s RLUSD by market capitalization.
Tether is a cryptocurrency that pegs its value to the US dollar, maintaining a 1:1 ratio.
Introduced in 2014 by Bitfinex, it was designed to stabilize the price fluctuations of other cryptocurrencies.
Tether is issued on various blockchain platforms and can be used for trading, investing, or as a store of value.
The stability of Tether relies on its reserve fund, which holds US dollars equivalent to the total amount of tether in circulation.
This unique mechanism aims to mitigate volatility and provide a safe-haven asset within the cryptocurrency market.
Record Supply and Increased On-Chain Activity
The EURC supply grew 43% over the past month to 217 million tokens worth $246 million. Most of the EURC tokens circulate on the Ethereum network, up 35% in a month to 112 million, while Solana saw the fastest expansion to 70 million tokens. Active addresses rose 66% to 22,000 and the monthly transfer volume surpassed $2.5 billion, up 47% in a month.
On-chain activity refers to any transaction, interaction, or event that occurs within a blockchain network.
This can include transactions, smart contract executions, and data storage.
On-chain activity is recorded on the blockchain in real-time, providing a permanent and transparent record of all interactions.
According to recent statistics, on-chain activity has increased significantly over the past year, with some blockchains experiencing up to 50% growth.
This trend suggests growing adoption and interest in blockchain technology.
The token’s growth has also been driven by increased on-chain activity, with stablecoin swap volumes between foreign currency pairs on Ethereum-based decentralized exchanges soaring to multi-year highs last week, dominated by the EUR-U.S. dollar pair.
Growing Demand for Diversification
The accelerating growth of EURC could be a sign of growing demand for diversification to euro-denominated digital assets, particularly as global investors navigate increasing economic uncertainties in the U.S. with the ‘Trump administration’s wide-scale tariff rollout’.
EURC is currently the largest euro stablecoin on the market, but it lags far behind its dollar-denominated counterparts. Dollar-pegged stablecoins make up 99% of the rapidly growing stablecoin market, led by Circle‘s $58 billion USDC and rival Tether‘s $143 billion USDT token.
Xapo Bank reported a 50% increase in euro deposit volumes during the first quarter, outpacing the 20% rise in USDC stablecoin deposits. Meanwhile, deposits in USDT declined by over 13%.
