On April 14, 2025, Circle’s euro-backed stablecoin, EURC, leaped 43% in supply over the past month, hitting a record 217 million tokens worth $246 million, driven by demand for euro-centric digital assets. The U.S. dollar’s 9% drop against the euro this year, combined with tariff tensions and trade uncertainties, has prompted investors to favor EURC, emphasizing its growing role in the cryptocurrency market. This article analyzes the growth factors, its effects, and its significance for stablecoins.
What Fuels EURC’s Growth
EURC’s rise mirrors concerns over U.S. dollar instability. With the dollar weakening and Trump’s tariffs raising recession fears, crypto investors are diversifying into euro assets. EURC has grown across blockchains: Ethereum hosts 112 million tokens (up 35%), Solana surged 75% to 70 million, and Base, Coinbase’s layer-2, grew 30% to 30 million. On-chain activity jumped, with active addresses rising 66% to 22,000 and monthly transfers up 47% to over $2.5 billion, per RWA.xyz data.
Tether’s exit from euro stablecoins, halting EURT due to EU’s MiCA regulations, has propelled EURC. Exchanges like Binance removing USDT for EU users to comply has highlighted Circle’s token, now the largest euro stablecoin, though far smaller than dollar-based USDC ($58 billion) and USDT ($143 billion).
Market Shifts
The $200 billion-plus stablecoin market is 99% dollar-dominated, but EURC’s growth suggests a diversification trend. Xapo Bank reported a 50% rise in euro deposits in Q1 2025, surpassing USDC’s 20% growth, while USDT deposits fell 13%. Euro-dollar swaps on Ethereum decentralized exchanges hit multi-year highs, reflecting this shift.
On X, users see EURC as a dollar volatility buffer, though some argue dollar stablecoins will retain dominance due to trading pairs. The $2.5 trillion crypto market remains positive, with Bitcoin at $83,500, despite tariff concerns.
Future Potential
EURC’s MiCA-compliant design, backed 1:1 by euros in regulated EU institutions, ensures stability. With DeFi and cross-border payments expanding, EURC could grow further if dollar issues persist. Investors should watch its Web3 integration and Bitcoin connections.
Conclusion
Circle’s EURC reaching a $246 million supply on April 14, 2025, marks a key moment for euro stablecoins. Driven by dollar challenges and regulatory changes, its 43% rise points to a diversifying crypto market, making EURC a significant asset for investors in 2025.
