EURC, a euro-backed stablecoin issued by Circle Internet Financial, has reached an important market cap milestone. The recent achievement comes amid Circle’s acceptance under the European Union’s Markets in Crypto-Assets (MiCA) regulation.
It also highlights the EURC’s increasing adoption in the European market as it fights for dominance among its competitors.
EURC Stablecoin Hits $5M in Market Cap
Patrick Hansen, a Senior Director at Circle, highlighted EURC’s recent achievement in a post on social media X.
According to the update, Circle has hit the €50 million market cap, ranking it as the second-biggest euro-backed stablecoin. Data from DeFiLlama shows EURC now has a market cap of $53 million as of this writing. EURC is backed at a ratio of 1:1 with a total circulating volume of $48.39 million.
AEUR, the euro-backed stablecoin by Anchored Coins, is the highest in the euro-stablecoin market cap hierarchy, with $62.71 million. However, Hansen noted that the EURC is still ahead of AEUR as it is the largest MiCA-compliant euro stablecoin.
According to him, AEUR, issued from Switzerland, has now stopped issuance and redemption due to the insolvency of Switzerland-based FlowBank.
The surge in EURC’s market cap can be attributed to its growing adoption on Ethereum and Base, Coinbase’s Layer 2 network. The total EURC circulating volume on Ethereum is now $35.94 million, while that of Base is $7.9 million. Hansen believes the EURC will soon become the leading euro stablecoin by market cap if it continues upward.
Circle EURC Stablecoin Alignment with MiCA Regulation
In July, Circle received a regulatory license under the MiCA regulation and gained regulatory clarity. Thanks to the license, Circle now provides its stablecoin services within the European Union, facilitated by MiCA’s “passporting” feature. This feature enables crypto firms registered in any EU nation to operate effortlessly across all member states.
Circle’s approval under MiCA is also beneficial for the broader crypto ecosystem. It can increase trust and stability within the crypto market. It could also set a precedence for other established crypto institutions to enter the crypto space.
Beyond this, it has the potential to quicken the crypto industry’s expansion and general adoption throughout Europe and beyond.
EURC offers a stable alternative to the often volatile nature of cryptocurrencies like Bitcoin and Ethereum. The stablecoin provides investors with a convenient way to enter and exit the crypto market, bypassing traditional banks when performing financial transactions.
The European Union approved MiCA in June 2023 to promote financial stability in the crypto ecosystem. The EU is well-positioned for this adoption, accounting for over 17.6% of global crypto transaction volume.
Competition in the Broader Stablecoin Ecosystem
Over the years, the stablecoin ecosystem has witnessed rising competition among stablecoin issuers.
These entities have released stablecoin as an alternative to other unique digital assets. Some of the top stablecoins fighting for the top spot in the market include Tether (USDT), Circle’s USD Coin (USDC), Binance USD (BUSD), and TrueUSD (TUSD).
Earlier this year, Tether’s USDT and Circle’s USDC emerged as the most popular dollar-backed stablecoins.
