coincodex.com
Key highlights:
- Stablecoin issuer Circle makes a big move by launching their euro-backed $EURC stablecoin directly on the speedy Solana blockchain.
- This opens up cheaper Euro transactions compared to using Ethereum, which can have those darn expensive "gas" fees.
- The price of $SOL tokens jumped over 10% in a day. Getting a stablecoin of this size on the network means more mainstream uses for Solana.
The price of Solana jumped over 10% in the last 24 hours as major stablecoin issuer Circle launched its euro-backed $EURC stablecoin natively on the high-speed Solana blockchain.
Circle announced the launch of $EURC on Solana through tweets from both the Circle and Solana Twitter accounts. In its tweets, Circle highlighted how the launch of $EURC on Solana will expand access to the euro in the crypto space.
Big news: @Circle’s $EURC stablecoin is now available on Solana! ?
— Solana (@solana) December 18, 2023
Now, you can use and integrate the euro-backed stablecoin with near instant settlement and extremely low fees.
Learn more ? https://t.co/2yXJ9hMzwc
What is $EURC?
$EURC, also known as the Euro Coin, is Circle's euro-backed stablecoin. Like their more popular dollar-pegged $USDC stablecoin, $EURC maintains a 1:1 peg to its fiat counterpart, the euro. Circle maintains the peg through a financial backing model composed of cash and short-duration European government bonds.
Since its initial launch in mid-2022, $EURC has grown rapidly. Data from CoinCodex shows the market cap of $EURC has swelled to over $56 million. However, until now $EURC was only available on Ethereum, Avalanche, and Stellar.
Why launch on Solana?
The launch of $EURC on Solana is a big deal. As anyone who has tried moving $USDC on Ethereum can attest, gas fees can be irritatingly high. In contrast, Solana is known for blazing fast speeds and ultra-low transaction fees, often under $0.01.
This makes Solana very appealing for applications involving frequent or small-value money transfers. DeFi protocols, exchanges, and wallets that integrate $EURC will now be able to offer drastically cheaper euro-to-crypto onboarding ramps compared to other chains.
As Circle's Vice President of Product Rachel Mayer noted, expanding $EURC to Solana takes us "towards a more efficient, inclusive and user-centric financial ecosystem."
Bullish news drives $SOL higher
Investors saw the $EURC launch on Solana as bullish long-term news for the project. In the 24 hours since the announcement, the price of the native $SOL token has surged over 10%, rising from around $68 to a current price of $75 based on data from CoinCodex.
Long-term price predictions on sites like CoinCodex also adjusted higher, with some estimates for $SOL in 2024 now calling for a price of nearly $440, representing robust continued growth over the next two years.
The integration of a major stablecoin like $EURC looks to open the floodgates for further mainstream adoption of Solana's lightning-fast network.
Will Solana ($SOL) meet the long-term expectations of many cryptocurrency investors? For the answer to this question, you need to take a look at our Solana Price Prediction for 2040-2050.