Circle’s EURC Stablecoin Soars as Dollar Slips & EU Regulation Fuels Demand

EURC’s rapid ascent has caught the attention of crypto markets, with supply jumping significantly in recent weeks. The current EURC supply represents a substantial increase from under $175 million in March. The expansion has been particularly notable on multiple blockchain networks, reflecting broadening adoption and utility in decentralized finance (DeFi) ecosystems.

The rally in EURC comes against a backdrop of renewed volatility in the U.S. dollar. Since the beginning of 2025, the dollar has weakened by roughly 9% against the euro amid increasing macroeconomic uncertainty, trade tensions, and expectations of prolonged rate cuts by the Federal Reserve. President Donald Trump’s second-term economic strategy, including the introduction of new tariffs on Chinese and European goods, has further contributed to currency market instability.

This climate has prompted a strategic shift among digital asset investors, who are increasingly hedging against dollar-denominated risks. Alex Obchakevich, founder of Obchakevich Research, posted on X: "In recent weeks, interest in the Euro has grown tremendously. And this interest has not escaped the Circle EURC stablecoin."

Xapo Bank, a regulated crypto-friendly institution based in Gibraltar, reported a 50% increase in customer euro deposits during the first quarter of 2025, more than doubling the growth rate of U.S. dollar stablecoins like USDC. In contrast, Tether’s EURT has seen waning interest, and its overall market share has sharply declined as exchanges like Binance restrict USDT access for European users.

One of the key drivers behind EURC’s momentum is the European Union’s MiCA (Markets in Crypto-Assets) regulation, which came into partial effect earlier this year. MiCA provides legal clarity and a harmonized framework for crypto assets across EU member states, giving compliant projects like EURC a clear advantage.

Circle has positioned EURC to align directly with MiCA guidelines — offering full transparency on reserves, regular attestations, and operational accountability. Meanwhile, Tether has begun winding down support for EURT in the EU, citing potential non-compliance issues. This retreat has opened up room for EURC to capture market share as the default regulated euro stablecoin across Europe.

Industry watchers note that EURC’s credibility is strengthened by Circle’s parallel success with USDC, which remains one of the top two dollar stablecoins globally.

EURC's ecosystem presence is expanding rapidly across several major blockchain platforms. Ethereum remains the primary hub, hosting over 112 million EURC tokens, a 35% increase in the past month. Solana, known for high-speed transactions and low fees, has seen EURC supply grow by 75% to 70 million tokens. The Coinbase-backed Base network, an Ethereum Layer 2, now holds 30 million tokens, up 30%.

This cross-chain availability significantly increases EURC’s utility in DeFi protocols, cross-border payments, and trading platforms. With euro liquidity now accessible across ecosystems, developers and users are building new applications that can capitalize on stable, regulated European digital currency flows.

Market analysts project EURC’s supply could reach €400 million by the end of 2025 if current growth trends continue. While that still pales in comparison to USDC’s and USDT’s multi-billion-dollar supplies, EURC's trajectory signals the early stages of a broader shift, one that could reshape global stablecoin markets by introducing strong regional alternatives to dollar dominance.

As Europe tightens its digital asset oversight and the U.S. continues its unpredictable stance on crypto regulation, EURC could emerge not just as a euro alternative, but as a blueprint for the next generation of fiat-backed stablecoins.