While the economic value of stablecoins today is around $153 billion, the issuance of euro-backed stablecoins has grown from $31.9 million worth of euro tokens on January 3, 2020, to $569 million today, an increase of 1683%. Since November 2021, the number of euro stablecoins has inflated by 85.34%, but from January 2022 to the present, the number of euro stablecoins has declined by 14.17% in the past seven months.
Stablecoins pegged to the euro are worth more than 5 billion since the beginning of the year
Today, most of the value of the stablecoin economy is based on USD-backed tokens, but a small number of other crypto-fiat tokens also exist. For example, while stablecoin issuer Tether manages the largest dollar-pegged token, USDT, Tether also manages fiat-pegged crypto-assets based on the euro, peso, British pound, and Chinese yuan.
Tether recently launched sterling and Mexican peso stablecoins, while stablecoin issuer Circle just launched the company’s second major stablecoin backed 1:1 with the euro. According to the data, there are more than 500 million euros worth of stablecoins in existence today, or about $569 million on July 31, 2022.
The value of the euro-based stablecoin economy has inflated by 1,683% since the first month of 2020. Tether’s euro-pegged stablecoin is the largest, with $400 million worth of euros in circulation today. Stasis euro (EURS) issued by Stasis is the second largest euro stablecoin with a market cap of $124 million, and Angle Protocol’s ageur (AGEUR) has a value of $44.34 million in AGEUR in circulation.
While Circle launched the euro-pegged stablecoin Eurocoin (EUROC), the market valuation is far below that of top euro stablecoin contenders. After the company’s initial release of 2,330 EUROC on June 30, there are approximately 1,020,192 EUROC in circulation today. Although Circle’s euro-pegged cryptocurrency has a lower market cap compared to EURT, EURS, and AGEUR, EUROC’s overall valuation has grown by 43,685% since June 30.
The total valuation of euro stablecoins is a drop in the ocean compared to dollar-pegged stablecoins
The stagnant euro (EURS) is up 799.42% since June 5, 2020, but the market valuation of AGEUR is the opposite, down 74.94% from 177 million AGEUR to today’s $44.34 million AGEUR. Tether’s EURT and Angle Protocol’s AGEUR have roughly the same 24-hour volume, as EURT’s 24-hour volume is $1,451,459 and AGEUR’s global swap volume is $1,492,259.
Stasis euro had the highest volume on August 1, 2022, with a global volume of $13,273,109, and Circle’s EUROC had just over $127,000 in 24-hour volume. The number of euro-based stablecoins has increased significantly since 2020, but since the first month of 2022, the number of euro-based stablecoins has dropped by 14.17%. There are also smaller euro-based stablecoin crypto projects such as EURST and EUROS.
Also, despite a 1,683% increase over the past two years, euro-pegged stablecoins are a drop in the bucket compared to the entire stablecoin economy. Euro cryptoassets today represent only 0.37% of the $153 billion stablecoin economy. Furthermore, despite the increase in the number of stablecoins pegged to the euro since 2020, the value of the euro has been fluctuating against the dollar. The EUR/USD pair was flat against the U.S. dollar in mid-July, but has since broken out again to $1.02 per euro on Aug. 1.
What do you think of the growth of the euro crypto token in the stablecoin economy? Let us know what you think about this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, theblock.co/data/decentralized-finance/stablecoins/total-euro-stablecoin-supply
Disclaimer: This article is for informational purposes only. It is not a direct offer or an invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned herein.