Circle's Euro Coin (EURC) market cap is growing quickly as the ongoing trade war pushes the US dollar price lower.

The euro has risen by 2.2%, reaching its highest price since February 2022 at its current price of $1.13.

Euro Coin (EURC), a euro-pegged stablecoin created by Circle, has seen a rapid increase in its market capitalization as the ongoing trade war pushes the US dollar price lower.

"In recent weeks, interest in the euro has grown tremendously, and this interest has not escaped the Circle EURC stablecoin," Obchakevich Research founder Alex Obchakevich wrote in a recent X post.

The euro has risen by 2.2%, reaching its highest price since February 2022 at its current price of $1.13.

Amid this happening, decentralized finance (DeFi) protocol Aave saw €2.3 billion of Euro Coin inflows in April alone, and EURC’s capitalization is growing at a rapid pace, the analyst added.

Aave saw €2.3B of Euro Coin inflows in April alone as EURC’s capitalization grows rapidly. The euro is trading at $1.13, reaching its highest level since February 2022. Afterward, the cryptocurrency is expected to stabilize at $1.11 to the dollar.

The US and European Union are likely to reach an agreement on a trade deal that will stabilize the euro at $1.11 to the dollar. Afterward, the Biden administration is expected to announce an extension of the executive order on digital assets.

After launching on Ethereum, Euro Coin was also deployed on Avalanche, Base, Stellar, Sonic and Solana, leading to a growing supply.

However, in the broader picture, the stablecoin market is expected to become even more competitive in the second half of 2025.

Euro Coin and USDC (USDC) issuer Circle is reaping the rewards of its regulatory-friendly strategy. The firm’s products are the top euro and US dollar-pegged stablecoins that comply with the European Union’s Markets in Crypto-Assets (MiCA) regulation.

This stands in contrast to Tether’s USDt (USDT) stablecoin, which is not designed to meet MiCA requirements.

The current stablecoin market leader is Tether, with its USDt stablecoin currently having a market cap of $144 billion according to CoinMarketCap data. This is significantly higher than leading stablecoin USDC’s $60 billion market cap.

However, many expect this gap to shrink as the USDt is being pushed from the European Union’s market due to a lack of MiCA compliance. This trend culminated in the world’s leading crypto exchange, Binance, delisting USDt for its European Economic Area-based users to comply with the rules in March.