On April 14, 2025, Circle’s euro-tied stablecoin, EURC, surged 43% over the past month, reaching a record supply of 217 million tokens valued at $246 million, propelled by demand for euro-based digital assets. The U.S. dollar’s 9% fall against the euro in 2025, alongside trade disputes and tariff uncertainties, has spurred investors to embrace EURC, highlighting its growing influence in the cryptocurrency market. This article covers the surge’s drivers, its implications, and its place in the stablecoin ecosystem.
Reasons for EURC’s Surge
The EURC supply spike reflects unease about U.S. dollar stability. With the dollar declining and Trump’s tariff plans fueling recession concerns, crypto investors are shifting to euro assets. EURC has expanded across blockchains: Ethereum holds 112 million tokens (up 35%), Solana grew 75% to 70 million, and Base, Coinbase’s layer-2, rose 30% to 30 million. On-chain data shows active addresses up 66% to 22,000 and monthly transfers soaring 47% to over $2.5 billion, per RWA.xyz.
Tether’s exit from euro stablecoins, discontinuing EURT due to EU’s MiCA rules, has elevated EURC. Exchanges like Binance dropping USDT for EU users to align with regulations have boosted Circle’s token, now the top euro stablecoin by market cap, though it lags behind dollar-based USDC ($58 billion) and USDT ($143 billion).
Economic Context
Dollar stablecoins control 99% of the $200 billion-plus stablecoin market, but EURC’s rise points to diversification. Xapo Bank saw a 50% surge in euro deposits in Q1 2025, outpacing USDC’s 20% rise, while USDT deposits dropped 13%. Euro-dollar pair swaps on Ethereum decentralized exchanges hit multi-year highs, reflecting this trend.
X users view EURC as a dollar volatility hedge, though some insist dollar stablecoins will prevail due to liquidity. The $2.5 trillion crypto market stays bullish, with Bitcoin at $83,500, despite tariff worries.
Outlook
EURC’s MiCA-compliant framework, backed 1:1 by euros in EU-regulated entities, ensures trust and clarity. As DeFi and cross-border payments grow, EURC may gain traction if dollar challenges continue. Investors should monitor its Web3 adoption and Bitcoin synergy potential.
Conclusion
Circle’s EURC reaching $246 million on April 14, 2025, is a milestone for euro stablecoins. Fueled by dollar weakness and regulatory shifts, its 43% surge signals a shifting crypto market, positioning EURC as a vital option for investors in 2025.