By |Edited by
Jun 27, 2025, 7:04 a.m.
- The Euro-U.S. dollar exchange rate has surged 12.88% in the first half of the year, outperforming major indices like Nasdaq and S&P 500 and nearly matching BTC’s gain.
- The combined market cap of EUR-pegged stablecoins has grown by 44%, with Circle’s EURC leading the increase with a 138% rise.
- Despite the growth, EUR-pegged stablecoins’ market cap remains less than 1% of that of dollar-pegged stablecoins.
The Euro-U.S. dollar exchange (EUR/USD), the world’s most liquid foreign exchange pair, has surged 12.88% in the first half, outperforming Nasdaq and S&P 500 and nearly rivaling bitcoin
14.8% rise, according to data source TradingView.
The strength of the euro has increased the appeal of stablecoins with values pegged to the euro.
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The cumulative market cap of 21 euro-pegged stablecoins has increased 44% from $310 million to $480 million. Leading the growth is the U.S.-listed Circle’s EURC stablecoin, whose market cap has increased by 138% to $200.36 million.
“One of my bets trades this year was to move my entire stablecoin stack from USDC/USDT into a Euro-denominated stablecoin like EURC. Up 13% in dollar value in less than 5 months,” Legendary, the pseudonymous host of The Modern Market Show, .
While the demand for euro-pegged stablecoins has increased, their combined market cap remains less than 1% of that of dollar-pegged stablecoins, which boast a cumulative .
EUR/USD has risen from 1.0354 to nearly 1.17, hitting the highest since September 2021. The upswing is characterized by a between the exchange rate and the differential between the Fed and ECB interest rates, as well as a .
The 90-day correlation coefficient between EUR/USD and bitcoin has recently jumped to 0.62, the highest since February 2024, indicating a moderate positive correlation between the two.
Omkar Godbole is a Co-Managing Editor on CoinDesk’s Markets team based in Mumbai, holds a masters degree in Finance and a Chartered Market Technician (CMT) member. Omkar previously worked at FXStreet, writing research on currency markets and as fundamental analyst at currency and commodities desk at Mumbai-based brokerage houses. Omkar holds small amounts of bitcoin, ether, BitTorrent, tron and dot.
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