Euro stablecoin market analysis: small scale but great potential

As the world's second largest currency, the euro's market share in the blockchain stablecoin sector is less than 1% of that of the US dollar stablecoin. With institutions like Circle beginning to make moves, this situation is expected to improve. This article will conduct an in-depth analysis of several major euro stablecoins, including their issuance mechanisms, scale, and application status.

Euro Tether (EURT)

Despite facing questions about compliance and transparency, Tether's USDT still leads the stablecoin market with a market capitalization of $65.9 billion. EURT is similar to USDT, issued centrally by Tether and claims to be backed by 100% real asset reserves.

As of July 21, the issuance of EURT is 108 million, mainly circulating on the Ethereum network. On-chain data shows that Bitfinex exchange is the largest holder, followed by two liquidity pools of Curve, the Polygon cross-chain bridge, and FTX exchange. The on-chain usage ratio of EURT is relatively low, with most held by external accounts.

Euro Coin (EUROC)

As a major competitor to Tether, Circle launched EUROC on the Ethereum network on June 30. The company claims that EUROC is backed by funds in bank accounts valued at 100% in euros.

Due to the short time since its launch, the issuance of EUROC is only about 320,000, mainly held by unidentified external accounts. There is only a small amount of liquidity on-chain in the decentralized exchange DFX.

STASIS EURO (EURS)

EURS was issued by the STASIS platform in July 2018 and is one of the early euro stablecoins. Its issuance mechanism is similar to Tether, claiming to be backed by a 1:1 reserve account collateral and subject to regular audits.

The issuance of EURS is 78.61 million, mainly circulating on the Ethereum mainnet, with a small amount distributed across networks such as Arbitrum, Matic, xDAI, Algorand, and Ripple. On-chain data shows that the liquidity on Curve and Uniswap V3 is relatively high.

agEUR (AGEUR)

agEUR is an innovative decentralized stablecoin. Users can mint agEUR on a 1:1 basis, while the protocol manages exchange rate risk through hedging agents and liquidity providers. Recently, the Angle protocol has also added lending features, allowing users to mint agEUR by over-collateralizing crypto assets.

The issuance of agEUR is approximately 42.83 million, with liquidity on Curve and Uniswap V3 accounting for over 60% of the total, demonstrating good on-chain application.

Iron Bank EURO (ibEUR)

ibEUR is part of the Fixed Forex project launched by Andre Cronje. Although 120 million coins were created, the actual circulating supply is only about 10.23 million. Users can lend ibEUR through Iron Bank or yearn.fi/lend.

After excluding the unused portion, over 80% of the circulating ibEUR is concentrated in two trading pairs on Curve, demonstrating high on-chain liquidity.

sEUR (SEUR)

sEUR is one of the synthetic assets on the Synthetix platform. Users can mint sUSD by over-collateralizing SNX tokens, and then exchange it for synthetic assets like sEUR.

Synthetix data shows that the issuance of sEUR is approximately 7.8 million. On the Ethereum mainnet, over 60% of sEUR is concentrated in two liquidity pools of Curve.

Summary

The Euro stablecoin market is small, but its price remains relatively stable around 1 Euro. EURT leads with an issuance of 108 million, while the emerging EUROC is still in its early stages. Decentralized stablecoins have broader applications on-chain, mainly concentrated on DEX platforms like Curve and Uniswap V3. With the growth of market demand and the entry of new participants, the Euro stablecoin market is expected to see greater development.