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The market cap of Circle\u2019s Euro Coin (EURC<\/a>), a euro-pegged stablecoin, is growing quickly as the ongoing trade war pushes the US dollar price lower.<\/p>\n \u201cIn recent weeks, interest in the euro has grown tremendously\u201d and \u201cthis interest has not escaped the Circle EURC stablecoin,\u201d Obchakevich Research founder Alex Obchakevich wrote in a recent X post<\/a>.<\/p>\n The euro has risen by 2.2%, reaching its highest price since February 2022 at its current price of $1.13.<\/p>\n Obchakevich said that amid this happening, decentralized finance (DeFi) protocol Aave saw \u20ac2.3 million of Euro Coin inflows in April alone. He further highlighted that EURC\u2019s capitalization is growing at a rapid pace.<\/p>\n Source: <\/em>Obchakevich\u2019s<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n CoinMarketCap data shows EURC\u2019s market cap rose from under $84 million at the end of 2024 to more than $198 million as of mid-April \u2014 a 136% increase year to date.<\/p>\n Related: <\/strong><\/em>ECB exec renews push for digital euro to counter US stablecoin growth<\/strong><\/em><\/a><\/p>\n The euro\u2019s recent rally comes as the US dollar weakens on the back of escalating trade tensions. Since Dec. 31, 2024, the dollar has dropped from 0.97 euro to 0.88 euro, a 9.3% decline against the euro.<\/p>\n The US and European Union \u201care likely to reach an agreement on a trade deal that will stabilize the euro at $1.11 to the dollar,\u201d Obchakevich said. Still, he expects the Euro Coin to keep growing:<\/p>\n \u201cEURC will continue to grow through integration with various payment systems and blockchains.\u201c<\/p><\/blockquote>\n The analyst said that after launching on Ethereum, Euro Coin was also\u00a0deployed<\/a>\u00a0on Avalanche,\u00a0Base<\/a>, Stellar, Sonic and Solana, leading to a growing supply. He shared his outlook on future market developments:<\/p>\n \u201cI predict EURC to grow to 400 million euros by the end of this year. This will be further impacted by MiCa regulatory support and economic challenges.\u201c<\/p><\/blockquote>\n Related: <\/strong><\/em>Digital euro to be \u2018most private electronic payment option<\/strong><\/em><\/a>\u2019<\/strong><\/em><\/p>\n Euro Coin and USDC (USDC<\/a>) issuer Circle is reaping the rewards of its regulatory-friendly strategy. The firm\u2019s products are the top euro and US dollar-pegged stablecoins that comply<\/a> with the European Union\u2019s Markets in Crypto-Assets (MiCA) regulation.<\/p>\n The current stablecoin market leader is Tether, with its USDt (USDT<\/a>) stablecoin currently having a market cap of $144 billion according to CoinMarketCap data<\/a>. This is significantly higher than leading stablecoin USDC\u2019s<\/a> $60 billion market cap.<\/p>\n Still, many expect this gap to shrink as the USDt\u00a0keeps being pushed from the European Union\u2019s market<\/a>\u00a0due to a lack of MiCA compliance. This trend culminated in the world\u2019s leading crypto exchange, Binance,\u00a0delisting USDt for its European Economic Area-based users<\/a>\u00a0to comply with the rules in March.<\/p>\nThe euro grows amid an increasingly harsh trade war<\/h2>\n
MiCA works in Circle\u2019s favor<\/h2>\n