The euro-based stablecoin market is gaining traction as traders seek alternatives to the U.S. dollar amid growing macroeconomic uncertainty and geopolitical tensions. On April 15, Circle’s EURC stablecoin reached an all-time high supply of $248 million, solidifying its position as the largest euro-denominated stablecoin in circulation.
Traders Flee the Dollar Amid Tariff Tensions
The surge in EURC’s supply comes at a time when confidence in the U.S. dollar is wavering. Trade tensions between the European Union and the United States—particularly around tariffs—have raised concerns about long-term economic stability. In response, traders in Europe and Asia are diversifying away from USD-backed stablecoins, favoring euro-denominated assets like EURC that carry less exposure to U.S.-driven risks.
Multi-Chain Growth: Ethereum Leads the Way
According to data from Rwa.xyz, EURC’s supply is now spread across multiple blockchains, with:
- $127 million on Ethereum
- $79 million on Solana
- $37 million on Base
- Less than $3 million each on Avalanche and Stellar
This multi-chain deployment reflects Circle’s strategy to expand EURC’s utility and liquidity across diverse DeFi ecosystems.
Currency Shifts Drive Stablecoin Preference
One of the key factors fueling EURC’s rise is the U.S. dollar’s decline against the euro. Since January, the dollar has dropped from $0.98 to $0.88 per euro, in large part due to ongoing tariff disputes and inflationary pressures in the U.S.
This relative weakening of the dollar has boosted the appeal of euro-denominated assets for users looking to preserve value and hedge against currency fluctuations — especially in cross-border trade and decentralized finance (DeFi) applications.
MiCA Compliance Gives EURC a Regulatory Edge
Another major advantage driving EURC’s growth is its full compliance with the EU’s MiCA (Markets in Crypto-Assets) regulatory framework. MiCA enforces strict rules around transparency, reserves, and risk management — making EURC a more attractive option for institutional and retail users alike.
Notably, MiCA’s introduction has sidelined competitors like Tether’s EURT, which failed to meet regulatory standards. As a result, USDT and other non-compliant stablecoins are being phased out of the European market, opening the door for EURC to expand its user base.
USD Still Dominates, but EURC is Gaining Ground
Despite the rapid growth of EURC, the stablecoin market remains heavily USD-dominated. Out of the $226 billion global stablecoin supply, USD-backed stablecoins account for 99% of the total. Tether’s USDT alone controls 63%, or approximately $143 billion.
Still, Circle’s euro-pegged offering is carving out a niche, particularly as Europe looks to strengthen its financial sovereignty and reduce dependency on the U.S. dollar. The regulatory backing and real-world utility of EURC position it as a credible alternative for users seeking stability outside the dollar-centric system.
