On April 14, 2025, Circle’s euro-backed stablecoin, EURC, jumped 43% in supply over the past month, achieving a record 217 million tokens valued at $246 million, fueled by demand for euro-focused digital assets. The U.S. dollar’s 9% decline against the euro this year, combined with trade tensions and tariff uncertainties, has driven investors to EURC, underlining its rising prominence in the cryptocurrency market. This article explores the surge’s causes, its effects, and its role in the stablecoin landscape.
What’s Driving EURC’s Growth
EURC’s expansion reflects concerns over U.S. dollar instability. With the dollar weakening and Trump’s tariff policies raising recession fears, crypto investors are diversifying into euro-based 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, rose 30% to 30 million. On-chain activity spiked, with active addresses increasing 66% to 22,000 and monthly transfer volumes up 47% to over $2.5 billion, according to RWA.xyz.
Tether’s withdrawal of its euro stablecoin, EURT, due to EU’s MiCA regulations, has boosted EURC. Exchanges like Binance removing USDT for EU users to comply with these rules have shifted attention to Circle’s offering, now the leading euro stablecoin by market cap, though far behind dollar-pegged USDC ($58 billion) and USDT ($143 billion).
Market Dynamics
The stablecoin sector, with over $200 billion in market cap, is 99% dollar-driven, but EURC’s rise suggests a shift toward variety. Xapo Bank reported a 50% increase in euro deposits in Q1 2025, compared to USDC’s 20% growth and a 13% drop in USDT deposits. Euro-dollar swaps on Ethereum decentralized exchanges reached multi-year peaks, signaling changing preferences.
On X, users praise EURC as a dollar volatility shield, though some argue dollar stablecoins will dominate due to trading pair advantages. The $2.5 trillion crypto market remains upbeat, with Bitcoin at $83,500, tempered by tariff concerns.
What Lies Ahead
EURC’s MiCA-compliant design, backed 1:1 by euros in EU-regulated institutions, offers stability and transparency. With DeFi and cross-border payments growing, EURC could expand its market share if dollar issues persist. Investors should track its Web3 integration and potential Bitcoin connections.
Conclusion
Circle’s EURC hitting a $246 million supply on April 14, 2025, marks a turning point for euro stablecoins. Driven by dollar struggles and regulatory shifts, its 43% growth highlights a diversifying crypto market, making EURC a key player for investors in 2025.
