The Circle’s Euro coin market cap (EURC), an euro-pegged stablecoin, is growing rapidly as the ongoing trade war is pushing for lower US dollar prices.
“In recent weeks, interest in the euro has grown huge” and “this interest has not escaped to Circle EURC Stablecoin,” the founder of obchakevich research Alex Obchakevich wrote to a recent X X Post.
The Euro rose by 2.2%, reaching the highest price since February 2022 at the current price of $ 1.13.
Obchakevich said that in the midst of the incident, decentralized financial protocol (DEFI) AAVE saw € 2.3 million of euro coins in April alone. He added that EURC capitalization is growing rapidly.
Source: Obchakevich’s
CoinMarketCap data shows EURC’s market cap rose from under $ 84 million at the end of 2024 to over $ 198 million to mid-April-a 136% increase of year to present.
Related: ECB EXEC changes pushing for Digital Euro to counter the growth of US Stablecoin
The Euro grows in the middle of an increasingly harsh trade war
The recent Euro rally arrives as the US dollar weakens the back of the trading tensions. Since December 31, 2024, the dollar dropped from 0.97 Euro to 0.88 Euro, a 9.3% decline against the euro.
The US and European Union “are likely to reach an agreement with a trade deal that will stabilize the Euro at $ 1.11 in the dollar,” Obchakevich said. However, he hopes that the euro coin continues to grow:
“EURC will continue to grow by integrating with various payment systems and blockchains.”
Analyst said that after launching at Ethereum, the Euro Coin is also na -Deploy We have been BaseStellar, sonic and solana, leading to a growing supply. He shares his views on future market developments:
“I guess EURC has grown to 400 million euros by the end of this year. It will be further affected by MICA regulation support and economic challenges.”
Related: Digital Euro to be ‘most prejudicing electronic payment option‘
Mica works in Circle’s favor
Euro coins and USDC (USDC) The Issuer Circle has reaped rewards of approach to its friendly regulation. Firm’s products is the leading euro and US dollar-pegged stablecoins to follow Includes European Union markets in crypto-assets (MICA) regulation.
The current head of the Stablecoin market is Tether, with the USDT (USDT) Stablecoin currently has a market cap of $ 144 billion according to CoinMarketCap Data. This is significantly higher than the leading stablecoin USDC’s $ 60 billion market cap.
However, many expect this space to be shrinking as USDT Continuously pushed from the European Union market Due to the lack of adherence to MICA. This trend ends with the world’s leading crypto exchange, Binance, USDT removal for European Economic Area users To comply with the policies in March.
