After Ethereum, stablecoin EUROC set to enter Avalanche’s fold

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  • 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.

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