Trade Uncertainty Fuels Euro Stablecoin Surge and Blockchain Adoption

Rising geopolitical tensions and the prospect of renewed trade wars are shaping the future of blockchain adoption in unexpected ways. While the euro has strengthened amid US tariff threats, driving demand for euro-pegged stablecoins like Circle’s EURC, infrastructure-focused projects like Truebit are exploring how blockchain can improve supply chain transparency and help enforce tariff regulations. 

Circle’s Euro Coin Surges as Trade War Undermines Dollar, Boosting EURC Adoption in DeFi

Circle’s euro-pegged stablecoin, Euro Coin (EURC), is seeing explosive growth in 2025. As trade tensions between the United States and key economic partners intensify, weakening the dollar, investors and decentralized finance (DeFi) users alike are increasingly turning to the euro and EURC as alternatives for transacting and preserving value.

According to data from CoinMarketCap, EURC’s market capitalization skyrocketed from under $84 million at the end of 2024 to over $198 million by mid-April — a remarkable 136% increase in just over three months. 

This surge comes amid a broader rally in the euro, which has gained 2.2% in recent weeks, pushing its exchange rate to $1.13 — the highest level since February 2022.

“In recent weeks, interest in the euro has grown tremendously,” noted Alex Obchakevich, founder of Obchakevich Research, in a recent post on X. 

He added that DeFi protocol Aave recorded inflows of €2.3 million worth of EURC in April alone, indicating mounting demand for the euro-denominated asset across lending platforms.

Obchakevich also pointed out that EURC’s growth has been fueled by its increasing multi-chain availability. 

Since launching on Ethereum, the stablecoin has expanded to major networks including Avalanche, Base, Stellar, Sonic, and Solana. This cross-chain strategy has allowed Euro Coin to become a popular on-ramp and liquidity source for users transacting in euros across various blockchain ecosystems.

Looking ahead, Obchakevich predicts that EURC could expand to €400 million in circulation by the end of 2025, citing favorable regulatory conditions and macroeconomic tailwinds.

A Trade War’s Monetary Fallout

The euro’s climb is directly tied to the weakening of the US dollar, which has shed more than 9.3% of its value against the euro since Dec. 31. 

Analysts attribute this drop to escalating tariff battles and rising uncertainty around the US's global trade strategy.

This economic turbulence is creating a unique opportunity for euro-pegged stablecoins like EURC, which are seen as both a hedge against dollar volatility and a compliant alternative for institutions operating under European regulations.

Circle’s regulatory foresight is now proving invaluable. As the European Union enforces the Markets in Crypto-Assets (MiCA) framework, which aims to bring stablecoins under strict regulatory scrutiny, Circle has emerged as a first mover by ensuring both USDC and EURC are fully compliant with the new laws.

While Tether’s USDt remains the dominant stablecoin globally with a market cap of $144 billion, it is losing ground in Europe due to regulatory challenges. Earlier this year, Binance delisted USDt for European Economic Area (EEA) users in order to remain MiCA compliant, prompting a shift toward alternatives like Circle’s offerings.

With MiCA support and growing infrastructure integration, Circle’s EURC is increasingly seen as the “go-to” euro-denominated asset for both retail and institutional players.

The Digital Euro Backdrop

The European Central Bank (ECB) is also pushing forward with its digital euro project, which it claims could become “the most private electronic payment option” available. While this initiative is still in development, the rising popularity of EURC in the DeFi space could give the ECB a preview of how euro-based digital currencies might be used in practice.

Circle, meanwhile, continues to strengthen its foothold in both DeFi and regulated financial ecosystems. Its euro strategy not only differentiates the firm from competitors focused solely on dollar markets but also positions it well for a future where digital euro assets could become a core part of the global financial infrastructure.

As the geopolitical and macroeconomic landscape continues to evolve, EURC is benefitting from a perfect storm: a rallying euro, a declining dollar, regulatory alignment under MiCA, and growing blockchain integration. All signs suggest that the stablecoin’s momentum is only accelerating.

If Obchakevich’s forecast proves accurate, EURC’s supply could more than double again before year-end — a development that would underscore a major shift in the global stablecoin ecosystem, and perhaps mark the beginning of Europe’s stronger digital presence in the world of decentralized finance.

Trade Wars Spark New Blockchain Use Cases Amid Crypto Market Jitters, Truebit Execs Say

Meanwhile, as escalating trade wars send shockwaves through global markets and rattle cryptocurrency prices, blockchain infrastructure firms like Truebit are finding unexpected opportunity in the turmoil. 

According to executives at the verification-focused network, the uncertainty surrounding international tariffs is highlighting one of blockchain’s most practical — and increasingly urgent — use cases: supply chain transparency.

On April 2, President Donald Trump reignited fears of a global trade conflict by announcing sweeping tariffs on US imports. Although he later paused rollout for select allies, the threat remains very real. Trump has doubled down on his plan to impose hefty tariffs on Chinese goods, which could send ripple effects across global commerce and upend traditional systems of logistics and trade certification.

Trump’s proposed tariffs would transform global trade (Source: Statista)

Blockchain for Fair Tariff Enforcement

Blockchain ledgers, especially public and immutable ones, are uniquely suited to track goods from point of origin through the entire logistics chain. This could be particularly useful in the context of Trump’s proposed tariffs, which could impact $2.4 trillion worth of goods, according to the Tax Foundation. If other nations retaliate, that figure may climb even higher.

For governments, blockchain could represent a powerful enforcement tool, ensuring that tariffs are applied equitably and accurately. 

Truebit, a protocol originally launched in 2017 to add verifiable computation to blockchain networks, is not yet working directly with governments, but it is actively laying the groundwork.

“We’re not yet talking directly to governments, but to the software vendors trying to interface with them — because that’s where we want to be,” said Jason Teutsch, CEO of Truebit. He revealed the company is already involved in a European Union-funded project that is exploring Web3’s role in strengthening global supply chains.

According to the executives, interest from enterprise and institutional vendors has been growing steadily. The company aims to provide the “verification layer” necessary for governments and multinational corporations to adopt blockchain without compromising on performance or regulatory compliance.

However, not everyone in the crypto industry sees the trade war as a boon.

“Aggressive tariffs and retaliatory trade policies could create obstacles for node operators, validators, and other core participants in blockchain networks,” warned Nicholas Roberts-Huntley, CEO of Concrete & Glow Finance. In his view, geopolitical disruptions could fracture global internet infrastructure, introduce new forms of regulatory censorship, and make life difficult for decentralized participants.

Market Headwinds and Token Struggles

Truebit’s own TRU token hasn’t been immune to market pressures. Since its launch in 2021, the token has struggled to gain momentum, and currently has a fully diluted market capitalization of just $20 million, according to CoinGecko. Market volatility, regulatory pressure, and broader skepticism around niche infrastructure tokens have all contributed to its stagnation.

Still, the executives argue that Web3 is no longer just about speculation — it’s about hard infrastructure for a world increasingly shaped by geopolitical fractures and digital trust.