The Euro-based stablecoin market is growing as traders move away from the dollar amid trade uncertainty.
Europe’s stablecoin market is slowly shifting away from the dollar. On Tuesday, April 15, Circle’s EURC stablecoin hit an all-time high supply of $248 million in supply. This makes it the largest euro-denominated stablecoin in circulation, putting it ahead of USD-based stablecoins such as USDG.
The growth coincides with rising concerns about the EU’s trade relations with the U.S. amid ongoing tariff tensions. Traders, especially those in Europe and Asia, are increasingly opting for alternatives to the U.S. dollar that are less exposed to geopolitical risks.
More than half of EURC’s supply, or $127 million, is on the Ethereum network. Solana comes in second with $79 million, while Base accounts for $37 million. Avalanche and Stellar hold smaller shares, each below $3 million.
Trade tensions and USD decline fuel EURC rise
One of the biggest contributors to EURC’s growth is the dollar’s devaluation against the euro. Ongoing tensions between the U.S. and its major trading partners have fueled macroeconomic uncertainty, especially around inflation.
Since January, the U.S. dollar has declined significantly against the euro, dropping from $0.98 to $0.88, largely due to ongoing tariff concerns. This relative decline has helped boost the appeal and market share of euro-backed stablecoins.
EURC has also benefited from its full compliance with the European Union’s strict MiCA stablecoin regulations. Notably, MiCA’s transparency and reserve requirements forced Tether’s USDT and EURT out of the European market. With USDT being the largest stablecoin globally, this shift has prompted some European investors to favor a euro-denominated option instead.
Still, despite EURC’s relative rise, it is important to note that USD-backed stablecoins still dominate the market. USD-backed stablecoins currently account for 99% of the $226 billion in global stablecoin supply. Tether’s USDT controls 63%, or $143 billion.
