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Circle’s chain of decisions around Euro Coin could have EUROC go either way

Circle’s chain of decisions around Euro Coin could have EUROC go either way

Circle, the company behind USDC, the second-largest stablecoin on the market, announced its ambitions to expand the use of its euro-backed stablecoin, EURO C. Circle offered a euro-backed token in addition to its US dollar-backed USDC. Sign. Adding support for another chain was part of a plan to expand the stablecoin’s reach and adoption. This EUROC news came during the Solana Breakpoint 2022, which saw several other important announcements.

Circle to bring the Euro to Solana?

The stablecoin issuer’s tweet also mentioned that it hopes to bring its cross-chain protocol to Solana by the first half of 2023. Henceforth, Ethereum served as the underlying platform for the euro coin. Additionally, FTX is expected to assist with the migration to Solana. The company also mentioned that several decentralized finance protocols had expressed interest in helping launch the Circle Euro Coin. By providing traders with a second base currency to work with and allowing borrowing and lending of euro coins, a wide range of applications are expected.

In addition to USDC, Solana Pay currency would be accepted as a form of payment.

EURO C lacks popularity for now… but could that change? 

According to DefiLlama, the market cap of stablecoins as of November 7 was $146.89 billion. With a market share of over $69 billion of the total market capitalization, USDT had the lion’s share. USDC followed USDT with a market cap of over $45 billion. With a market capitalization of just over 80 million US dollars, EUROC came within striking distance rank of #18.

Circle’s dollar-denominated stablecoin ranked second after USDT when looking at daily stablecoin supply data from Dune Analytics. However, EUROC did not occupy a place there. This was a sign of its low popularity with users, which may be mainly due to its failure to integrate with other protocols. The stablecoin transfer volume by currency over the last 30 days also showed that users did not prefer EURO C. Aside from the USD, there didn’t seem to be enough data to rank the #18 stablecoin among the most traded stablecoins.

Circle’s move may be the need of the hour

Given that most evidence points to Euro Coin’s lack of popularity, Circle’s decision to go down this route may be the best course of action. Its usefulness will increase as you add support for Solana and other decentralized protocols. In turn, it paves the way for future chain migrations.

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