Since 2020, the capitalization of euro-backed stablecoins has increased by $537 million. However, such figures represent only 0.37% of the total capitalization of the stablecoin market.
According to a report by analyst firm The Block, many euro-backed stablecoins entered the market between January 2020 and July 2022. The capitalization of such coins increased from $31.9 million to $569 million in two years.
Most stablecoins on the market remain backed by the U.S. dollar, but euro-backed stablecoins are showing steady growth. Euro-backed stablecoin issuance has increased 85.34% since November 2021, however, the euro-backed stablecoin volume has declined 14.17% since January 2022.
The Block reports that as of July 31, 2022, euro-backed stablecoin issuance exceeds 0.5 billion and has a total capitalization of $569 million. The largest projects, according to CoinGecko, at 10:00 a.m. (GMT+3) on August 2, 2022, are:
- Tether EURt (EURT). Capitalization — $211 million, up 364% since January 2022.
- STASIS EURO (EURS). Capitalization — $127 million, up 799.42% since June 2020;
- Angle Protocol (AGEUR). Capitalization — $45 million, asset volume down 74.94% since 2020;
- Celo Euro (CEUR). Capitalization — $32 million, up 115% since July 2021;
- e-Money EUR (EEUR). Capitalization — $10.5 million, up 93% since October 2021.
Previously, analysts at The Block stated that the stablecoin market had grown by 388% in 2021. Such popularity of stablecoins led to the fact that in January 2022, they managed to keep their financial indicators against the background of the general fall of the cryptocurrency market. Already by June of this year, in the total capitalization of the cryptocurrency market, stablecoins accounted for a record 16%.
It is also worth noting that some countries are interested in legalizing stablecoins. For example, the UK’s Parliament has developed a legal framework to regulate stablecoins.
