- Avalanche became the second home for EUROC after Ethereum.
- EUROC’s commitment could be part of the company’s long-term vision to tap into the European market.
Stablecoin publisher 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 launched on Ethereum [ETH] network last year.
Read Avalanches [AVAX] Price Forecast 2023-24
Circle stated that EUROC will boost on-chain liquidity on Avalanche and provide global users an option to trade Euros alongside USD Coin [USDC]which is linked to USD.
EUROC still has a long way to go
Euro Coin is 100% backed by Euros in Euro bank accounts, so it is always 1:1 convertible into Euros. Euro Coin issuance operates under a regulated framework, with the same rules that apply to USDC.
At the time of publication, the market capitalization was $51 million, a far cry from the multibillion-dollar valuations of USD-pegged stablecoins. However, news of the expansion caused a 160% increase in 24-hour trading volume.
Under expected terms, it made up a miniscule portion of Ethereum’s total stablecoin market cap of $69.09 billion, according to DeFiLlama.
However, the prospect of additional liquidity failed to raise the price of Avalanche’s native token AVAX. The token was marginally down 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 a application in France to be registered as a Digital Asset Service Provider.
Realistic or not, here is AVAX’s market cap in terms of BTC
This comes as the market cap of USDC, the second largest stablecoin, has fallen 34% since early 2023, according to CoinMarketCap. The circulating supply contracted significantly after the stablecoin depleted due to Circle’s $3.3 billion exposure to the collapsed Silicon Valley Bank (SVB).
In a interview with Bloomberg TV, CEO Jeremy Allaire said investors wanted to take risk from the US because of regulatory concerns.
