On April 14, 2025, Circle’s euro-pegged stablecoin, EURC, soared 43% in supply over the past month, hitting a record 217 million tokens worth $246 million, driven by rising demand for euro-based digital assets. The U.S. dollar’s 9% drop against the euro in 2025, alongside trade disputes and tariff concerns, has pushed investors toward EURC, cementing its growing role in the cryptocurrency market. This article examines the reasons for this surge, its consequences, and its impact on the stablecoin sector.
Factors Behind EURC’s Rise
The EURC supply growth mirrors worries about U.S. dollar stability. As the dollar weakens and Trump’s tariff policies raise recession fears, crypto investors shift to euro-denominated assets. EURC is growing fast across blockchains. Ethereum now holds 112 million tokens, up 35%. Solana rose 75% to 70 million, while Base (Coinbase’s layer-2) jumped 30% to 30 million. On-chain activity surged too. Active addresses rose 66% to 22,000. Monthly transfers climbed 47% to over $2.5 billion, according to RWA.xyz.
Tether’s retreat from euro stablecoins, ending EURT due to EU’s MiCA rules, has amplified EURC’s appeal. Exchanges like Binance dropping USDT for EU users to meet regulations have spotlighted Circle’s stablecoin, now the largest euro-based token by market cap, though dwarfed by dollar giants USDC ($58 billion) and USDT ($143 billion).
Economic and Market Trends
Dollar-based stablecoins dominate 99% of the $200 billion-plus stablecoin market, but EURC’s growth hints at diversification. Xapo Bank noted a 50% jump in euro deposits in Q1 2025, outstripping USDC’s 20% rise, while USDT deposits fell 13%. Euro-dollar pair swaps on Ethereum-based decentralized exchanges hit multi-year highs, reflecting this shift.
X posts show excitement, with users citing EURC as a dollar volatility hedge, though some believe dollar stablecoins will maintain supremacy due to liquidity. The $2.5 trillion crypto market stays optimistic, with Bitcoin at $83,500, despite tariff-related caution.
Future Prospects
EURC’s MiCA-compliant structure, backed 1:1 by euros in regulated EU institutions, ensures reliability and clarity. As DeFi and cross-border payments expand, EURC may gain ground, particularly if dollar uncertainty persists. Investors should watch its integration into Web3 ecosystems and possible Bitcoin synergies.
Conclusion
Circle’s EURC reaching a $246 million supply on April 14, 2025, is a landmark for euro stablecoins. Propelled by dollar weakness and regulatory changes, its 43% rise signals a diversifying crypto market, positioning EURC as a vital asset for investors in 2025’s economy.
