Circle’s $EURC dominates a $1.06 billion Euro stablecoin market that controls just 0.35% of the total DeFi supply, while EUR swap volume is less than 0.1% of the $3.2 trillion USD total.
Despite years of integration into major protocols, euro stablecoins remain a marginal force in the DeFi trading and liquidity pools, outpaced by their USD counterparts at every level.
Why it’s important:
- Circle issues regulated stablecoins, with $EURC the largest share of the euro-pegged market at $445 million, almost seven times its largest competitor.
- DeFi’s near-total dependence on USD stablecoins for settlement creates systemic risks as the euro strengthens against the dollar.
- The limited depth of the EUR pool leads to slippage in large transactions, excluding institutional participants who need efficient execution.
- Without deeper Euro liquidity, EUR stablecoins cannot function as viable collateral in the credit and leverage markets.
The details:
- DeFiLlama shows that $306.9 billion of the $307.6 billion stablecoin supply is denominated in USD; The EUR owns only $1.06 billion.
- EUR stablecoin swaps totaled $3.17 billion over the twelve-month period, versus $3.20 trillion for USD, according to Dune Analytics.
- By active holders of more than 3 months, $EURC leads with 60,107; Monerium’s EURe follows at 23,247; $EURCVKeep EURI and AEUR combined below 2,600.
- In terms of on-chain volume among European issuers, EURe leads with 60.8% (€831.6 million), with $EURCV at 32% (€437.5 million), per BarterDeFi.
The big picture:
- MiCA has licensed 19 EMT issuers in 11 countries issuing 29 stablecoins, but has not authorized any asset-related tokens, according to BeInCrypto.
- BarterDeFi reports that Private Market Makers are now executing ~24% of routed EUR volume, targeting the slippage issue on large swaps.
The message Circle $EURC Leading a small corner of DeFi when Euro Stablecoin’s Struggle for Liquidity first appeared on BeInCrypto.