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Data revealed by Kaiko shows that Tether’s euro-pegged stablecoin has traded at a “persistent discount” to the euro since November 2023.
Tether‘s euro-pegged stablecoin (EURT) has consistently traded at a discount to the euro since November 2023, failing to compete with Circle‘s $EURC stablecoin, according to data revealed by Kaiko.
In a blog post on Jan. 29, the Paris-headquartered firm noted that Circle’s EUR Coin has maintained a premium for a few months in a row, indicating a surge in demand. Meanwhile, Société Générale‘s EURCV, the first stablecoin issued by a bank, has largely maintained its peg since its launch in early December 2023.
$EURC for the third straight month - 1"> However, the EUR stablecoin market remains fragmented, with EURT primarily traded on offshore platforms like HTX (formerly Huobi) and Bitfinex, while $EURC dominates trading on decentralized exchanges, Kaiko noted, adding that this fragmentation could contribute to the observed volatility in their respective values.
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Despite the competition among various euro-pegged stablecoins, concentration prevails in the market, with just five crypto exchanges accounting for 98% of total euro trade volume. According to Kaiko, crypto exchanges Bitvavo, Kraken, Coinbase, Bitstamp, and Binance collectively dominate the landscape, handling over 98% of total trades.
Kaiko analysts point out a correlation between the quantity of euro volume and the number of euro-denominated trading pairs listed by each exchange. Notably, Kraken and Bitvavo, boasting over 200 euro pairs each, solidify their positions with the highest euro-denominated volume. On the other hand, global exchanges like Bitflyer and Bybit focus on regions such as APAC, contributing to the diverse landscape of euro-denominated trading.
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