On April 14, 2025, Circle’s euro-backed stablecoin, EURC, surged 43% over the past month, reaching a record supply of 217 million tokens valued at $246 million, driven by growing demand for euro-denominated digital assets. The U.S. dollar’s 9% decline against the euro this year, coupled with trade tensions and tariff uncertainties, has fueled investors’ shift toward EURC, highlighting its rising role in the cryptocurrency market. This article explores the factors behind this growth, its implications, and what it means for the stablecoin landscape.
Why EURC Is Gaining Traction
The EURC supply expansion reflects broader concerns about U.S. dollar stability. With the greenback weakening and fears of a U.S. recession tied to Trump’s tariff policies, crypto investors are diversifying into euro-based assets. EURC has seen significant growth across multiple blockchains: Ethereum hosts 112 million tokens (up 35%), Solana leads with a 75% increase to 70 million, and Base, Coinbase’s layer-2, grew 30% to 30 million. On-chain activity also spiked, with active addresses rising 66% to 22,000 and monthly transfer volumes jumping 47% to over $2.5 billion, according to RWA.xyz data.
Tether’s exit from the euro stablecoin market, with its EURT withdrawal due to EU’s MiCA regulations, has further boosted EURC. Major exchanges like Binance delisting USDT for EU users to comply with these rules have shifted focus to Circle’s offering, making EURC the largest euro stablecoin by market cap, though it trails far behind dollar-pegged giants like USDC ($58 billion) and USDT ($143 billion).
Market and Economic Context
The stablecoin market, dominated by dollar-based tokens, accounts for 99% of the sector’s $200 billion-plus capitalization. However, EURC’s growth signals a push for diversification. Xapo Bank reported a 50% surge in euro deposit volumes in Q1 2025, outpacing a 20% rise in USDC deposits, while USDT deposits fell 13%. This shift aligns with increased stablecoin swap volumes for euro-dollar pairs on Ethereum-based decentralized exchanges, hitting multi-year highs.
Posts on X reflect enthusiasm, with users noting EURC’s rise as a hedge against dollar volatility. Yet, some argue dollar stablecoins will retain dominance due to their liquidity and trading pairs. The broader crypto market, valued at $2.5 trillion, remains bullish, with Bitcoin at $83,500, though tariff concerns temper gains.
Looking Ahead
Circle’s EURC benefits from its MiCA-compliant design, backed 1:1 by euros in regulated EU institutions, ensuring stability and transparency. As DeFi and cross-border payments grow, EURC could capture more market share, especially if dollar uncertainties persist. Investors and businesses should monitor its integration into Web3 platforms and potential Bitcoin synergy.
Conclusion
Circle’s EURC hitting a $246 million supply on April 14, 2025, marks a milestone for euro stablecoins. Fueled by dollar troubles and regulatory shifts, its 43% surge underscores a diversifying crypto market, positioning EURC as a key player for investors navigating 2025’s economic landscape.
