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 has only been 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.
