Euro Stablecoins’ Market Cap Surges to Practically $500M as EUR/USD Rivals BTC’s H1 Good points
The Euro-U.S. greenback change (EUR/USD), the world’s most liquid overseas change pair, has surged 12.88% within the first half, outperforming Nasdaq and S&P 500 and almost rivaling bitcoin
14.8% rise, based on knowledge supply TradingView.
The power of the euro has elevated the attraction of stablecoins with values pegged to the euro.
The cumulative market cap of 21 euro-pegged stablecoins tracked by knowledge supply Coingecko has elevated 44% from $310 million to $480 million. Main the expansion is the U.S.-listed Circle’s EURC stablecoin, whose market cap has elevated by 138% to $200.36 million.
“Considered one of my bets trades this yr was to maneuver my whole stablecoin stack from USDC/USDT right into a Euro-denominated stablecoin like EURC. Up 13% in greenback worth in lower than 5 months,” Legendary, the pseudonymous host of The Trendy Market Present, introduced on X.
Whereas the demand for euro-pegged stablecoins has elevated, their mixed market cap stays lower than 1% of that of dollar-pegged stablecoins, which boast a cumulative market worth of $254.88 billion.
EUR/USD has risen from 1.0354 to almost 1.17, hitting the very best since September 2021. The upswing is characterised by a breakdown within the correlation between the change price and the differential between the Fed and ECB rates of interest, in addition to a broad-based shift away from the US greenback.
The 90-day correlation coefficient between EUR/USD and bitcoin has not too long ago jumped to 0.62, the very best since February 2024, indicating a reasonable constructive correlation between the 2.
