- Avalanche became the second home for EUROC after Ethereum.
- EUROC’s push could be part of the company’s long-term vision to tap into the European market.
Stablecoin issuer Circle announced the launch of its euro-backed stablecoin, Euro Coin [EUROC] on the Avalanche [AVAX] network as part of its ambitious multi-chain strategy. Avalanche became the second home for EUROC after it was launched on the Ethereum [ETH] network last year.
Read Avalanche’s [AVAX] Price Prediction 2023-24
Circle stated that EUROC will boost on-chain liquidity on Avalanche and provide global users with an option to trade in euros besides USD Coin [USDC], which is pegged to USD.
EUROC has a long way to go
Euro Coin is 100% backed by euros held in euro-denominated banking accounts so that it’s always redeemable 1:1 for euros. The issuance of Euro Coin works under a regulated framework, with the same rules that govern USDC.
At the time of publication, its market cap was $51 million, a far cry from the multi-billion dollar valuations of the USD-pegged stablecoins. However, the news of the expansion caused a 160% uptick in its 24-hour trade volume.
On expected terms, it formed a miniscule proportion of the Ethereum’s total stablecoin market cap of $69.09 billion, according to DeFiLlama.
However, the prospect of additional liquidity couldn’t lift Avalanche’s native token AVAX’s price. The token was marginally down by 0.5% at press time, per CoinMarketCap.
Eye on the European market?
The aggressive EUROC push could be part of the company’s long-term vision to tap into the European market. Earlier this year, the issuer filed an application in France to get registered as a Digital Asset Service Provider.
Realistic or not, here’s AVAX’s market cap in BTC’s terms
This comes when the market cap of USDC, the second-largest stablecoin, plunged 34% since the beginning of 2023, as per CoinMarketCap. The circulating supply contracted significantly after the stablecoin depegged following Circle’s $3.3 billion exposure to collapsed Silicon Valley Bank (SVB).
In an interview with Bloomberg TV, CEO Jeremy Allaire said that investors were looking to take risk out of the U.S. owing to concerns about the regulatory environment.