The Euro’s Soaring Growth Driven by US Economic Tensions
The EURC stablecoin, issued by Circle and backed by the euro, is experiencing unprecedented growth. In just one month, its circulating supply has surged by 43%, reaching $246 million. This exceptional dynamic comes in the midst of a tense geopolitical context, marked by uncertainties surrounding the US economy and the anticipated return of tariff measures under the Trump administration.
The weakening of the dollar, which has fallen 9% against the euro since the beginning of the year, is leading more and more users towards European currency alternatives. In this climate, EURC emerges as the main beneficiary of this diversification quest.
Massive Adoption on Ethereum, Solana, and Base
The growth of EURC extends beyond its market capitalization. On-chain activity around the token is also skyrocketing. According to stablecoin data from RWA.xyz, the number of active addresses has surged by 66% in one month, reaching 22,000, while monthly transfer volumes now exceed $2.5 billion, an increase of 47%.
In terms of networks, Ethereum remains the dominant blockchain with 112 million EURC in circulation (up 35%), but Solana is experiencing the fastest growth, with a 75% increase to reach 70 million tokens. The Base network, developed by Coinbase, is also not far behind, showing a 30% increase with 30 million EURC.
Reconfiguring the European Stablecoin Market
EURC is also benefiting from the reconfiguration of the regulatory and competitive landscape. The withdrawal of EURT, Tether’s euro stablecoin, coincides with the entry into force of the MiCA regulation in the European Union. Additionally, major platforms like Binance have chosen to withdraw USDT from the list of stablecoins accessible to European residents, further enhancing EURC’s competitive advantage.
This strategic repositioning of exchanges, combined with Circle’s compliance with new European requirements, solidifies EURC as the reference in the euro-stablecoin market. It now surpasses tokens such as Paxos’ USDG and Ripple’s RLUSD in terms of market capitalization.
A Signal of Global Rebalancing?
Although dollar-denominated stablecoins still overwhelmingly dominate the market with 99% of the total supply, the success of EURC could mark the beginning of a recomposition. The increasing adoption of euro-denominated digital assets reflects a growing need for coverage against the uncertainties of US monetary policy.
Xapo Bank, a Gibraltar-based financial player, highlights a 50% increase in euro deposits in the first quarter, compared to only 20% for USDC. Deposits in USDT, on the other hand, have dropped by 13%.
This rapid increase in volumes occurred against a backdrop of growing concerns about the future primacy of the US dollar and the threat of a recession in the United States, as markets prepared for Trump’s planned ‘Day of Liberation’ in April
As the global stablecoin market expands and becomes more complex, the EURC’s explosion symbolizes a strategic turning point: a slow but progressive dedollarization of the crypto finance, initiated by a series of political and monetary shocks across the Atlantic.
