The market capitalization of euro-pegged stablecoins grew by 120% this year, topping 184.6 million euros currently. An increase that places the euro as the second most traded fiat currency in the stablecoin market and that may be an indication of greater use in 2022. However, it is a tiny amount compared to the market capitalization of stablecoins pegged to the dollar. The sum of the capitalization of USDT and USDC exceeds 120,000 million dollars.
Stablecoins are digital currencies linked to fiat currencies, financial assets, commodities or other crypto assets, which are intended to maintain a stable value in the market. They were created as a solution to the typical volatility of cryptocurrencies such as bitcoin or ethereum, whose value fluctuates constantly, depending on supply and demand.
Capitalization of stablecoins pegged to the euro does not reach 1%, compared to 99% of the dollar
Due to their ability to maintain a stable value, the use and adoption of stablecoins is closely related to payments, financial instruments and the DeFi ecosystem. They are arguably a secure gateway to unlocking the full potential of decentralized finance.
Stablecoin pegged to the euro
Currently, there are around 73 stablecoins, of which 8 are pegged to the euro. Although not as widely adopted as other stablecoins, they are available for trading on several of the best-known cryptocurrency exchanges in the industry. Like Binance, Gate.io, Bitfinex, Bitstamp, Coinhouse, among others. In DeFi protocols such as Uniswap V3, 1inch and MoonSwap, their use and adoption is also very common.
Stasis Euro (EURS)
With a market capitalization of almost 99 million euros, Stasis Euro (EURS) is currently the largest euro pegged stablecoin. Designed by the Stasis company, it is fully backed by guarantee reserves in euros, in a 1: 1 ratio. In its official Web, the issuing company explains that EURS uses liquidity guarantee mechanisms that make the stablecoin a unique currency in the market, combining the benefits of the euro with the transparency, immutability and efficiency of blockchain technology. In 2021, the issuance and market capitalization of EURS grew more than 290%.
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Stasis Euro (EURS) market capitalization in the last year. Source: CoinGecko
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Celo Euro (cEUR)
Celo Euro (cEUR) is a stable currency developed on the Celo protocol, whose value is linked to the euro. However, the stablecoin is backed by multiple cryptocurrencies available in the blockchain protocol reserve, which includes Bitcoin and Ethereum. Celo, which offers the benefits of any global digital currency, is focused on facilitating financial operations from smartphones, including the most basic ones. cEUR helps investors and users protect themselves from the typical volatility of cryptocurrencies, while being able to transfer value and conduct financial activities easily from a smartphone.
Being designed on a blockchain focused on scalability, cEUR allows to transact in a stable, secure, easy and economical way. By capitalization, cEUR is the second-largest euro-pegged stablecoin in the industry. With a market value of 41.9 million euros. The volume traded with this stablecoin exceeded 306,000 euros in the last 24 hours.
Market capitalization of Celo Euro (cEUR) in the last year. Source: CoinGecko
Celo, which functions as an open source ecosystem and payment platform for cryptocurrencies, announced the addition of Deutsche Telekom to the “Alliance for Prosperity” in April this year. About 130 companies and organizations focused on promoting financial inclusion through the blockchain participate in this Alliance.
Tether EUR (EURT)
Developed by the company Tether Limited, Tether EUR (EURT) ranks as the third largest euro-pegged stablecoin on the market. At press time, EURT has a capitalization of 40.1 million euros. Its volume traded per day exceeds 13.2 million euros, according to data from CoinGecko.
EUR Tether (EURT) is a stablecoin backed by reserves of euros equal to the amount of EURT issued, which guarantee its stable value in the market. EURT is available on the Bitcoin and Ethereum blockchain, according to the website official of Tether Limited, who is also the issuer of the largest stablecoin in the crypto industry, USDT. Through its stablecoins, Tether allows people to convert their cash into digital currency. Tether says it does this to take a more modern approach to money and democratize cross-border transactions via blockchain.
Market capitalization of Tether EUR (EURT) in the last year. Source: CoinGecko
Although Tether Limited is recognized as one of the most important companies in the industry, it is also one of the most controversial. In February of this year, Tether faced legal process by the New York Attorney General’s Office. She was accused of fraud and manipulation. The company reached an agreement with the regulator, paying a fine of $ 18.5 million.
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EURBASE (BASE) was born in 2019 as a hybrid stablecoin project designed to address the problems with anti-inflationary crypto assets. The stablecoin, collateralized by deposits in euros, bitcoin and other cryptocurrencies, has a market capitalization of 3.5 million euros about. Users can change EBASE to euros and vice versa, through the ETERBASE exchange. Furthermore, the stablecoin has been integrated into the Mooniswap and 1inch DEX, allowing its users to access various DeFi functionalities.
BitEUR is another of the stablecoins pegged to the euro available in the market. This stablecoin can be used as collateral on platforms such as Bitshares. The current BitEUR (BITEUR) circulating offering is 107,706 coins, so its market capitalization is close to 100.000 euros.
xEURO (xEUR) is a stablecoin pegged to the euro developed on the Ethereum blockchain. Its capitalization of is 19.890 euros approximately, with 20,419 xEUR in circulation in the market.
EUR-L (EURL) it is the first euro-backed stablecoin launched on the Tezos blockchain. It is a stable coin developed by the Casino Group and the startup Lugh, in collaboration with other companies. It was born to facilitate payments and commerce. The goal of the creators of EURL is to promote the integration of cryptocurrencies in large distribution companies.
The euro reserves that guarantee the stability of EURL in the market are stored in the Société Générale bank. The audits of the reserves of these stablecoins are carried out by the auditing firm PwC, which issues monthly reports on the status of the coin. In August of this year, Coinhouse CEO Nicolas Louvet reported that the volume of transactions with EURL had exceeded 100 million euros, since its launch in March.
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jEUR It is a synthetic stablecoin, the value of which is not pegged to a fiat reserve. Rather, it tracks the price of the euro through a peg mechanism with the USDC stablecoin, one of the most traded dollar-pegged stablecoins on the market. jEUR uses Chainlink’s decentralized pricing oracles to track USDC.
This stablecoin project was born to facilitate any type of payment or commercial operation, without volatility on the Ethereum blockchain. jEUR is issued and exchanged via the Forex protocol, Synthereum, developed by the Jarvis Network. The stablecoin can be exchanged for USDC or other jFiats stablecoins available within this protocol.