Circle's EURC Stablecoin Supply Surges Amidst US Economic Uncertainty

Circle's euro-backed stablecoin, EURC, has experienced significant growth, with its supply surging 43% over the past month. This increase brings the total supply to 217 million tokens, valued at $246 million, according to RWA.xyz data. The growth is attributed to mounting U.S. trade tensions and a weakening dollar, which are likely fueling demand for euro-denominated digital assets.

Most EURC tokens circulate on the Ethereum network, showing a 35% increase to 112 million. Solana saw the fastest expansion, with a 75% increase to 70 million tokens. Base, Coinbase's Ethereum layer-2, also experienced a 30% growth, reaching 30 million in EURC supply.

The token's on-chain activity has also seen an uptick, with active addresses rising 66% to 22,000. The monthly transfer volume surpassed $2.5 billion, marking a 47% increase in a month, as reported by RWA.xyz. EURC's growth was also fueled by Tether's exit from the euro stablecoin market and exchanges including Binance delisting USDT for EU users.

Xapo Bank, a Gibraltar-based Bitcoin-focused financial services firm, reported a 50% increase in euro deposit volumes during the first quarter. This growth outpaced the 20% rise in USDC stablecoin deposits, while USDT deposits declined by over 13%. Stablecoin swap volumes between foreign currency pairs on Ethereum-based decentralized exchanges also soared to multi-year highs last week, dominated by the EUR-U.S. dollar pair, according to Blockworks data.