Amidst trade uncertainty, the euro-based Stablecoin market is growing as traders move away from the dollar.
The European stubcoin market is slowly changing from the dollar. On Tuesday, April 15th, circle EURC Stablecoin reached its all-time high supply of $248 million supply. This makes it the biggest euro-denominated, ridiculous, ridiculous, ridiculous, ridiculous, ridiculous, ridiculous, silly, in the circulation, and goes ahead of USD-based stubcoins such as USDG.
This growth coincides with growing concerns over trade relations between the EU and the US amid ongoing tariff tensions. Traders, particularly European and Asian traders, are increasingly choosing alternatives to the US dollar that are not exposed to geopolitical risk.
More than half of EURC’s supply (over $127 million is found on the Ethereum Network. Solana is second at $79 million, with basic accounting for $37 million. Avalanche and Stellar each hold less than $3 million in stock.
EURC market capitalization divided by chain | Source: rwa.xyz
Trade tensions and rising US dollar fuel EURC
One of the biggest contributors to the euro’s growth is the devaluation of the dollar against the euro. Continuing tensions between the United States and its major trading partners have driven macroeconomic uncertainty, particularly regarding inflation.
Since January, the US dollar has dropped significantly against the euro, falling from $0.98 to $0.88, primarily due to ongoing tariff concerns. This relative decline helped to promote the appeal and market share of euro-collateralized stubcoin.
The EURC also benefits from full compliance with the European Union’s strict Mica Stablecoin regulations. In particular, MICA’s transparency and reserve requirements have driven Tether’s USDT and EURT out of the European market. With USDT being the world’s largest stubcoin, this shift has led some European investors to support euro-denominated options instead.
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Still, it is important to note that despite the relative rise in the EURC, USD-backed stubcoins still dominate the market. Currently, USD-backed Stablecoins account for 99% of the $226 billion global Stablecoin supply. Tether’s USDT manages 63%, or $143 billion.
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