Solana Leads Euro Stablecoin Issuances: The Circle Effect Behind the Numbers

Twenty-two million dollars more, but not necessarily in circulation. The supply of euro-backed stablecoins on Solana has increased by about 22 million dollars in a week, according to data from Token Terminal. The network surpasses all other chains tracked during this period. However, a pre-issuance of EURC intended for Circle's Gateway service seems to explain most of this increase, prompting a distinction between the tokens created and those actually available to users.

Key Points

• Token Terminal notes an increase of about 22 million dollars in the supply of euro stablecoins on Solana during the week ending October 25.
• A pre-issuance address from Circle holds about 20 million EURC, excluded from the circulating supply.
• Ethereum retains the top spot in total euro stablecoin amounts.
• The euro segment remains below 1% of the global stablecoin market.

Euro Stablecoins on Solana: A Rise to Read with Caution

Taken in isolation, the weekly ranking shows Solana as a clear winner. Its 22 million dollars more surpasses the cumulative growth of other blockchains tracked by Token Terminal. However, an increase in supply recorded on a chain does not necessarily translate to an equivalent influx of usable capital.

On October 23, Circle announced a new pre-issuance address for EURC on Solana, aimed at supporting the stablecoin through Gateway. The issuer explains that these tokens exist on the blockchain, but remain excluded from its calculation of circulating supply until they are made available to users.

Data published by Solana Compass allows for measuring the operation. The relevant address held about 20 million EURC, or nearly 22.4 million dollars at the rate on October 24. The total supply recorded on Solana had increased from about 105 to 125 million EURC on October 23.

Thus, the amount and timing correspond to the reported weekly increase. This suggests that the pre-issuance explains most of the movement, rather than a sudden surge in demand. However, Circle does not specify the pre-issued amount in its own statement.

In practical terms, when Gateway issues EURC on Solana, the tokens leave this technical reserve to join the user's wallet. The circulating supply then increases, without requiring a new increase in the total number of tokens already created. Solana Crushes the Competition in the Last Week (But There’s an Explanation) -- Source: X Account

Ethereum Remains at the Top of a Dollar-Dominated Market

This distinction does not diminish the interest in the development of infrastructures on Solana. Gateway facilitates the use of EURC across multiple blockchains, while the network also hosts EUR CoinVertible from Société Générale-FORGE and EURAU from AllUnity.

Low transaction fees are an advantage for payments and exchanges between currencies. However, the presence of issuers and services is not enough to measure activity: the volumes actually transferred, the liquidity available, and the uses provide additional insights.

At the segment level, Ethereum retains the top position in total stock. Estimates suggest the euro stablecoin market is between 835 and 916 million dollars, with discrepancies related to the scope and accounting method. It thus remains very minor compared to dollar-backed tokens.

The week thus marks primarily a development of the EURC infrastructure on Solana. To measure its adoption, the decisive figure is the amount of tokens actually put into circulation and used, rather than that prepared in a technical address. Circle's EURC, the future giant of Europe?

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