Circle’s Euro-based stablecoin expanded its activity in April, tracking the currency’s gains against the dollar. EURC expanded its trading volumes on a mix of growing supply and speculative trading against dollar-based stablecoins.
The Euro currency rally in the past month is getting reflected on the crypto market. EURC is currently matching the $1.14 USD price, with a mix of centralied and decentralized trading.
The Euro made its biggest gains in the past month, rapidly peaking at $1.15 USD.
In the meantime, the stablecoin markets remain heavily dollarized. However, alternative stablecoins are gradually growing in supply and influence.
Circle’s EURC is one of the most influential EUR-derived stablecoins, with an equivalent supply of over $240M. The token’s circulating supply is above $211M, adding over 50M tokens in the past month.
Circle also heavily marketed its stablecoins in April by expanding its Payment Network. Circle aims to use all minted stablecoins as both tradable assets and alternatives to fintech payment systems.
April’s volumes ranged between $70,000 and over $120M daily, with a mix of centralized and decentralized markets. EURC is represented on Coinbase and paired against the USDC.
EURC has all the features of USDC, including compliance with EU regulations and compatibility with the Dubai financial authorities. The token started with a niche supply of just $30M in 2024, with the most rapid supply growth coming in March and April.
The token’s expansion coincided with the growing supply of USDC on Solana. EURC is a multi-chain asset with representation on Avalanche, Base, Ethereum, and Solana. Over 70M of the tokens are on Solana. Over 37M of the EURC supply is still held by Circle and is awaiting distribution.
Euro trading shifts to decentralized markets
The increased volatility of the EUR on the currency markets is boosting DEX activity. Meteora is the biggest EURC market, carrying over 33% of EURC volumes.
Since EURC is also represented on Base, Aerodrome is yet another highly active market, with 11% of the volumes. The decentralized exchanges represent a makeshift forex market, making use of the EUR direction against the dollar.
EURC is traded by whales, with signs of selling into the latest rally to $1.13. The stablecoin is behaving similarly to other decentralized assets, with arbitrage and trading opportunities between DEX.
Some of the EURC pairs have been created in the past month, building up liquidity as the EUR currency appreciated. EURC has one highly active pair for EURC/USDC, tapping the traders on the Orca DEX.
Based on expert observations, the EUR/USD pair is still not stopping in its direction. The biggest factor for the value of EUR may be the European Central Bank’s decision on interest rates. The ECB is closely tracking the gains of the EUR, potentially looking into raising the Euro Area interest rate.
As a whole, EUR-based stablecoins have a total supply of over $536M, with a daily trading volume of above $100B. EURC has the biggest market cap share and covers 80% of the daily volumes.
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