The supply of Circle’s euro-backed stablecoin, EURC, has reached a record high indicating a high demand in the market. Over the previous month, the overall supply of EURC has increased by 43% to 217 million tokens, according to data from RWA.xyz.
This expansion represents a major turning point in the stablecoin’s growth trajectory, bringing its total value to almost $246 million.
EURC’s Supply on Ethereum Network Likely Helping The Token’s Hype
A significant amount of the EURC’s supply is housed on the Ethereum network, which continues to be the most popular platform for stablecoin activities.
The supply of EURC on Ethereum alone has increased by 35% in the last month, reaching 112 million tokens. The rise indicates a growing trend of EURC integration by users and developers into trading platforms, cross-border payments, and decentralized finance (DeFi) protocols.
Euro Backed Stablecoins See Rise in Market Popularity
With the goal of extending the use of stablecoins beyond dollar-pegged choices, EURC was introduced by Circle, the company that issues the popular USD Coin (USDC).
It provides a reliable digital representation of the Euro. The recent spike in the supply of EURC indicates that demand for digital currencies backed by the euro is growing, especially in European markets and among users looking for alternatives to stablecoin ecosystems that are dominated by the USD.
The expansion of EURC may indicate a larger trend toward currency diversification in crypto finance as stablecoin adoption continues to increase globally.
Also Read: Circle’s EURC Becomes Largest Euro Stablecoin, Hits $64.9M Market Cap
EURC’s Market Traction: What is Behind It?
Rising demand for digital assets denominated in euros and growing usage in decentralized finance (DeFi) are driving Circle’s euro-backed stablecoin, EURC, to acquire market traction.
A popular choice for cross-border payments, FX trading, and on-chain financial applications, EURC is being sought after by individuals and organizations looking for alternatives to USD-pegged stablecoins as the use of cryptocurrencies grows in Europe.
A significant contributor to its expansion has been Circle’s solid reputation, which was developed via USDC’s success and has fostered confidence in its stablecoin products.
Furthermore, the EURC is in a strong position to adhere to the EU’s impending MiCA laws, which offers a regulatory edge that attracts investors who are more cautious. The Ethereum network is where EURC is most active, and its integration with DeFi protocols has resulted in a 35% monthly growth in supply.
The increase in EURC’s value as the cryptocurrency market develops points to a larger trend toward stablecoin diversification and rising demand for fiat alternatives in blockchain-based finance both inside and outside of Europe.
Also Read: Circle Executive Predicts UK’s Imminent Stablecoin Regulation Push