Circle’s EURC grows as trade war pushes euro higher — Analyst

The market cap of Circles Euro Coin (EURC), a euro-pegged stablecoin, is growing quickly as the ongoing trade war pushes the US dollar price lower. In recent weeks, interest in the euro has grown tremendously and this interest has not escaped the Circle EURC stablecoin, Obchakevich Research founder Alex Obchakevich wrote in a recent X post.The euro has risen by 2.2%, reaching its highest price since February 2022 at its current price of $1.13.Obchakevich said that amid this happening, decentralized finance (DeFi) protocol Aave saw 2.3 million of Euro Coin inflows in April alone. He further highlighted that EURCs capitalization is growing at a rapid pace.Source: ObchakevichsCoinMarketCap data shows EURCs market cap rose from under $84 million at the end of 2024 to more than $198 million as of mid-April a 136% increase year to date.Related: ECB exec renews push for digital euro to counter US stablecoin growthThe euro grows amid an increasingly harsh trade warThe euros 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.The US and European Union are likely to reach an agreement on a trade deal that will stabilize the euro at $1.11 to the dollar, Obchakevich said. Still, he expects the Euro Coin to keep growing:EURC will continue to grow through integration with various payment systems and blockchains.The analyst said that after launching on Ethereum, Euro Coin was alsodeployedon Avalanche,Base, Stellar, Sonic and Solana, leading to a growing supply. He shared his outlook on future market developments:I 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.Related: Digital euro to be most private electronic payment optionMiCA works in Circles favorEuro Coin and USDC (USDC) issuer Circle is reaping the rewards of its regulatory-friendly strategy. The firms products are the top euro and US dollar-pegged stablecoins that comply with the European Unions Markets in Crypto-Assets (MiCA) regulation.The current stablecoin market leader is Tether, with its USDt (USDT) stablecoin currently having a market cap of $144 billion according to CoinMarketCap data. This is significantly higher than leading stablecoin USDCs $60 billion market cap.Still, many expect this gap to shrink as the USDtkeeps being pushed from the European Unions marketdue to a lack of MiCA compliance. This trend culminated in the worlds leading crypto exchange, Binance,delisting USDt for its European Economic Area-based usersto comply with the rules in March.Magazine: How crypto laws are changing across the world in 2025