Tether's Euro-Stablecoin Continues to Trail Behind Circle's EURC for Third Consecutive Month

Data shows Tether’s euro-pegged stablecoin consistently trades at a discount

A recent analysis by Kaiko reveals that Tether’s euro-pegged stablecoin (EURT) has been consistently trading at a discount to the euro since November 2023. This puts it at a disadvantage compared to Circle’s EUR Coin (EURC), which has maintained a premium for several months.

Fragmented market and offshore platforms contribute to volatility

The euro stablecoin market remains fragmented, with EURT primarily traded on offshore platforms like HTX and Bitfinex, while EURC dominates trading on decentralized exchanges. This fragmentation could be one of the reasons behind the observed volatility in their respective values.

Concentration of trade volume among top crypto exchanges

Although there is competition among various euro-pegged stablecoins, just five crypto exchanges control 98% of the total euro trade volume. Bitvavo, Kraken, Coinbase, Bitstamp, and Binance dominate the landscape and handle the majority of trades.

Correlation between trade volume and number of trading pairs

Kaiko analysts have found a correlation between the quantity of euro volume and the number of euro-denominated trading pairs listed by each exchange. Exchanges like Kraken and Bitvavo, with over 200 euro pairs each, have the highest euro-denominated volume.

Global exchanges contribute to diversity in euro-denominated trading

While some exchanges focus on specific regions such as APAC, contributing to the diverse landscape of euro-denominated trading, others like Bitflyer and Bybit play a significant role in this market.

Hot Take: Tether’s EURT struggles to compete with Circle’s EURC

Tether’s euro-pegged stablecoin, EURT, has consistently traded at a discount to the euro, failing to compete with Circle’s EUR Coin, EURC. The fragmented market and offshore trading platforms have contributed to the volatility in their respective values. Additionally, the concentration of trade volume among a few top crypto exchanges highlights the dominance of these players in the euro stablecoin market. However, the correlation between trade volume and the number of trading pairs listed by each exchange suggests that exchanges like Kraken and Bitvavo hold significant influence. Overall, Tether’s EURT faces challenges in gaining traction against its competitors.