Euro Stablecoin Market Analysis: Small Scale but Great Potential

As the second largest currency in the world, the scale of euro stablecoins in the blockchain field is less than 1% of that of US dollar stablecoins. However, as institutions like Circle begin to make their move, this situation may gradually change. This article will conduct an in-depth analysis of several major euro stablecoins, including their issuance mechanisms, scale, and application status.

Overview of Major Euro Stablecoins

Euro Tether (EURT)

EURT is a centralized euro stablecoin issued by Tether, similar to USDT, backed by real asset reserves. As of July 21, the issuance of EURT is 108 million, mainly circulating on the Ethereum network. The largest holder of EURT is a certain exchange, followed by two liquidity pools of Curve, the Polygon cross-chain bridge, and another exchange. It is worth noting that the on-chain usage ratio of EURT is low, with most held by external accounts.

Euro Coin (EUROC)

EUROC is a euro stablecoin launched by Circle on June 30, 2022, on the Ethereum blockchain. Circle claims that the issuance of EUROC is fully backed by euros held in euro-denominated bank accounts. Due to its short time since launch, the supply of EUROC is only about 320,000, mainly held by unidentified external accounts, with only a small amount of liquidity available on a certain decentralized exchange.

STASIS EURO (EURS)

EURS is a centralized Euro stablecoin issued by the STASIS platform in July 2018. Its issuance mechanism is similar to that of Tether, supported by collateral in reserve accounts on a 1:1 basis. The total issuance of EURS is 78.61 million, primarily concentrated on the Ethereum mainnet, with a small portion distributed across other public chains. One DEX accounts for nearly 40% of EURS liquidity, while another DEX also has some liquidity.

agEUR (AGEUR)

agEUR is an innovative decentralized stablecoin that employs a unique issuance mechanism. Users can mint agEUR at a 1:1 ratio using supported tokens, while managing risks through hedging agents and standard liquidity providers. Recently, Angle has also added lending features, allowing users to mint agEUR by over-collateralizing their crypto assets. The issuance volume of agEUR is approximately 42.83 million, and its liquidity is good, primarily distributed across two major DEXs.

Iron Bank EURO (ibEUR)

ibEUR is part of the Fixed Forex project launched by Andre Cronje. Although 120 million were created, the actual circulating supply is about 10.23 million. ibEUR is mainly used for lending, with over 80% of the liquidity concentrated in trading pairs on two DEXs.

sEUR (SEUR)

sEUR is a synthetic Euro asset on the Synthetix platform. Users can mint sUSD by over-collateralizing SNX tokens and then exchange it for sEUR. Currently, the issuance of sEUR is about 7.8 million, with 62.6% of the liquidity concentrated in two trading pools of a certain DEX.

Market Summary

The euro stablecoin market is currently small in scale, but prices generally remain stable around 1 euro. EURT leads with an issuance of 108 million, while EUROC is still in its early stages. Decentralized stablecoins have broader on-chain applications, mainly concentrated on DEX platforms, with some also used for lending. Centralized stablecoins like EURT and EURS are more commonly used on exchanges.

As more institutions and projects enter the euro stablecoin market, there may be more innovations and application scenarios in the future, enhancing the influence of the euro in the blockchain field.