The euro’s recent surge against the U.S. dollar is making waves across the cryptocurrency landscape. As of the first half of 2025, the euro has appreciated by a striking 12.88%, drawing comparisons to Bitcoin’s own impressive 14.8% climb. This remarkable rise isn’t just shaking the foreign exchange markets—it’s reshaping the stablecoin ecosystem, with euro-pegged stablecoins experiencing a notable spike in market capitalization.
Euro-Pegged Stablecoins on the Rise
In the past six months, the cumulative market cap of euro-backed stablecoins has ballooned by 44%, soaring from $310 million to $480 million, according to Coingecko. This surge is largely led by Circle’s EURC, a U.S.-listed euro-denominated stablecoin, which saw its market cap rocket by 138% to $200.36 million. The appeal? Traders are increasingly viewing euro-pegged stablecoins as a hedge against the U.S. dollar, which appears to be losing some of its luster in the global market. This trend is further underscored by the growing concerns over U.S. fiscal policies, as discussed in our recent article on US Debt Exceeds $37 Trillion: Why Bitcoin and Stablecoins Could Be Crucial.
“One of my best trades this year was to move my entire stablecoin stack from USDC/USDT into a Euro-denominated stablecoin like EURC,” shared Legendary, the pseudonymous host of The Modern Market Show, on X. He added, “Up 13% in dollar value in less than 5 months.” Such endorsements underscore a growing trend among crypto enthusiasts who are exploring alternatives to traditional dollar-based stablecoins.
The Larger Economic Picture
The euro’s upswing is not happening in isolation. The EUR/USD pair has climbed from 1.0354 to nearly 1.17, marking its highest level since September 2021. This rise defies the traditional correlation with the interest rate differential between the U.S. Federal Reserve and the European Central Bank. Instead, it signals a broader shift away from the dollar, driven by geopolitical influences and economic policies that favor a stronger euro.
This shift is also reflected in the 90-day correlation coefficient between EUR/USD and Bitcoin, which has jumped to 0.62—the highest since February 2024. This suggests a moderate positive correlation, highlighting how intertwined global currency movements and crypto markets are becoming. Analysts suggest this could be an indicator of things to come, as investors increasingly look to diversify their holdings in an ever-evolving financial landscape. For more insights into how companies like Circle are navigating these changes, see our analysis on Circle Stock in Up Only Mode Even as Bitcoin, Crypto Market Struggle.
Looking Ahead
While the burgeoning market cap of euro-pegged stablecoins is impressive, it still pales in comparison to their dollar-pegged counterparts, which command a staggering $254.88 billion. This disparity raises questions about the future potential of euro-backed digital assets. Can they close the gap? Or will the dollar continue to dominate the stablecoin market despite the euro’s recent gains?
As the second half of 2025 unfolds, all eyes will be on the euro’s next moves and how they influence both traditional and digital financial ecosystems. With geopolitical tensions and economic shifts continuing to play out, the interplay between fiat currencies and cryptocurrencies will remain a focal point for investors and analysts alike. The future of euro-pegged stablecoins hangs in the balance, raising intriguing possibilities—and uncertainties—for the global market.
Source
This article is based on: Market Cap of Euro Stablecoins Surges to Nearly $500M as EUR/USD Rivals Bitcoin’s H1 Gains
Further Reading
Deepen your understanding with these related articles:
- Coinbase Secures MiCA License, Expanding Crypto Services Across EU
- Peter Schiff Says He ‘Gets Bitcoin’ But Not USD-Pegged Stablecoins, Floats Gold-Backed Token Plan
- Bitcoin Investments in Japan Surge as Firms Hedge Against Yen Weakness
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
