Just crossed with this Leon Tweet talking about EUR M2 and of course where it happens.
As you remember MiCA started forcing exchanges and institutions to use an EUR based stablecoins if they are in Europe, basically to protect EUR "strength". As you can see in the chart above, EUR M2 is around $15.5 Trillion and the total Euro stablecoin supply just crossed $1 Billion.
If we do some math, thats roughly a 0.006% of the underlying money stock. That is not early, that is basically not even on the chart. This tell us a few important things that tend to get lost in Crypto Twitter hype cycles.
Euro stablecoins are still macro irrelevant, even after recent growth, they are effectively invisible compared to the size of the euro monetary system. Furthermore, adoption is massively behind USD stablecoins. Dollars found product market fit on chain years ago. Trading pairs, DeFi collateral, remittances, RWAs, treasuries, etc. Euro rails, still searching for their use case.
Also, Ethereum is doing the heavy lifting. Most euro stablecoin liquidity and activity lives on Ethereum today. Other chain exist but liquidity is fragmented, thin and often ecosystem "isolated".
This leads to the real issue, there is no dominant euro stablecoin rail. No clear winner.
This is not a tech problem, it is a regulatory, cultural and institutional problem. European finance moves slower, prioritizes compliance first and lacks the same dollar centric global demand loop. But this will change for sure in the future and if tokenized assets, on chain funds and European RWAs scale in the next years, euro stablecoins wont stay at 0.006% forever and they will become relevant. Ethereum is poised to handle most of it for sure.
EUR stablecoins are still in pre-infrastructure era.
When do you think this adoption will happen?
Source:
EUR Stablecoins Are Still Just 0.006% of EUR M2 and Ethereum Will Likely Handle the Scale
byu/kirtash93 inethtrader
Posted by kirtash93
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