Ethereum is absorbing most of the incremental growth of the Euro stablecoin, is European capital reselecting the on-chain settlement layer?

Abstract

The Euro stablecoin market is expanding rapidly, and what truly deserves attention is not the market size itself, but where the newly added funds are primarily flowing.

Latest data shows that as of September 7, the total supply of Euro stablecoins has reached approximately $848 million, with a net increase of about $156 million this year, of which Ethereum has absorbed about $125 million in new supply, accounting for approximately 69.4% market share.

This indicates that in the process of Euro stablecoins gradually entering the on-chain financial system, Ethereum remains the main carrying network.

For ETH, this may mean that stablecoins, payments, DeFi, and institutional financial activities are further reinforcing Ethereum's role as an on-chain settlement layer. Follow the public account "Bitcoin Lemon" for daily market analysis, market information, and practical insights.

The Euro stablecoin is entering a new growth phase

In recent years, the stablecoin market has been almost entirely dominated by the US dollar.

USDT and USDC occupy the vast majority of the market size, while Euro stablecoins have long been considered a relatively small niche market.

But this situation is changing.

Data shows that as of September 7, the total supply of Euro stablecoins has reached approximately $848.1 million, growing by about 22.6% this year, with a net increase of approximately $156 million.

In contrast, while US dollar stablecoins have also seen growth during the same period, their market base has already reached hundreds of billions of dollars.

Therefore, viewed from an absolute scale, Euro stablecoins are still very small.

However, in terms of growth rate and infrastructure development, this market is experiencing significant changes.

This is also why Ethereum's recent performance in the Euro stablecoin market is worth paying attention to. Follow the public account "Bitcoin Lemon" for daily market analysis, market information, and practical insights.

Ethereum has absorbed most of the new supply

The funds added to Euro stablecoins this year are not evenly distributed across various public chains.

Ethereum has become the primary carrying network.

Data shows that, this year, Ethereum absorbed approximately $125 million of the new supply of Euro stablecoins, accounting for about 69.4% market share.

Solana saw an addition of about $30 million, accounting for about 14.7%.

The two chains combined absorbed the vast majority of the new supply.

Meanwhile, the Euro stablecoin supply on Base has decreased from about $73.9 million to approximately $58.7 million.

This data is very noteworthy.

Because it indicates a critical issue.

When new Euro stablecoins enter the on-chain market, the issuers and funds are not entirely pursuing the lowest transaction fees.

Ethereum still possesses a very strong network effect. Follow the public account "Bitcoin Lemon" for daily market analysis, market information, and practical insights.

Why does European capital still prefer Ethereum?

The answer is actually not complicated.

What stablecoins truly need is not just low fees.

They also need liquidity, counterparties, DeFi protocols, exchanges, custodians, and mature financial infrastructure.

And Ethereum happens to have these things.

Currently, Ethereum has accommodated the largest stablecoin market in the world.

Previous data indicated that the total supply of stablecoins on Ethereum is about $162 billion, accounting for approximately 54.5% of the global stablecoin market, significantly higher than Tron and Solana.

This means that if a new stablecoin is issued on Ethereum, it can directly connect to the existing liquidity network.

This is particularly important for Euro stablecoins.

Because one of the major limitations of Euro stablecoins is not the issue of issuance.

But rather, the liquidity issue. Follow the public account "Bitcoin Lemon" for daily market analysis, market information, and practical insights.

MiCA is changing the Euro stablecoin market

Another important factor is the European regulatory environment.

As MiCA gradually becomes an important regulatory framework for the EU digital asset market, Euro stablecoins that comply with regulatory requirements are receiving more institutional attention.

Currently, EURC has become an important asset in the Euro stablecoin market, with its circulation breaking through 400 million euros in August. Circle indicates that EURC is being used in exchanges, payments, and institutional business scenarios.

Meanwhile, CoinDesk data shows that by August 2026, the total market value of Euro stablecoins has reached approximately $776 million, setting a new historical high, a year-on-year increase of 68.2%.

So this is not simply a sudden increase in one stablecoin.

But rather the entire Euro on-chain financial market is expanding. Follow the public account "Bitcoin Lemon" for daily market analysis, market information, and practical insights.

But there is a very important question here

The growth in the supply of Euro stablecoins does not equate to an increase in actual usage.

These two matters must be looked at separately.

Current data shows that although the supply of Euro stablecoins has increased significantly this year, the liquidity of on-chain DeFi lending pools, perpetual contracts, and Euro trading pairs remains relatively limited.

In other words,

The market has begun to "issue more Euro stablecoins."

But whether these stablecoins can truly transform into funds for trading, payments, lending, and settlement still needs time to verify.

This is also the biggest observational point in the current market.

If it is merely a growth in supply, while actual usage does not keep pace, then the market may need to reassess the impact of this growth on ETH.

However, if future trading volume, DeFi lock-up, and institutional payments increase in sync,

then the situation will be entirely different. Follow the public account "Bitcoin Lemon" for daily market analysis, market information, and practical insights.

What does this mean for ETH?

If Euro stablecoins continue to grow, and more and more funds choose Ethereum as their issuance and settlement network, then the role of ETH may further shift from "crypto asset" to "on-chain financial infrastructure asset."

Because stablecoins circulating on Ethereum require payment of network fees.

DeFi protocols need Ethereum to serve as the foundational settlement layer.

Institutional capital entering on-chain also needs to connect with trading, custodianship, and financial applications within the Ethereum ecosystem.

Thus, the growth of stablecoins will not simply translate into an increase in ETH prices.

But it could indeed strengthen Ethereum's network value.

This is also why when observing ETH, one should not only look at the ETH price itself.

It is also important to observe:

How many stablecoins exist on Ethereum?

Whether these stablecoins are truly being used?

Is there growth in DeFi liquidity?

Is institutional capital continuing to enter?

These data points are sometimes more important than short-term price fluctuations. Follow the public account "Bitcoin Lemon" for daily market analysis, market information, and practical insights.

Ethereum, Solana, and Base are forming new competition

Currently, the Euro stablecoin market is not dominated solely by Ethereum.

Solana has also absorbed about $30 million in new supply this year, accounting for approximately 14.7%.

This indicates that Solana is gaining a portion of the Euro stablecoin market share.

Though Base still has a certain scale, its supply has declined this year.

What will be worth observing in the future is whether these chains will form different positioning.

Ethereum may continue to take on institutional capital, DeFi, and high-value settlements.

Solana may rely on low costs and high throughput to attract payment, trading, and consumption scenarios.

Base may continue to rely on the Coinbase ecosystem for development.

Thus, the future competition in the Euro stablecoin market will likely not be simply about "who's supply is the largest."

But rather, who can truly transform stablecoins into everyday financial activities. Follow the public account "Bitcoin Lemon" for daily market analysis, market information, and practical insights.

Will Euro stablecoins become a new growth story for ETH?

Currently, it is not possible to draw a direct conclusion.

But at least it can be seen that a very clear trend is emerging.

Euro stablecoins are on the rise.

The regulatory framework is gradually being improved.

Institutional issuers are increasing.

And the new supply is clearly concentrated in Ethereum.

These factors together indicate that Ethereum is continuing to become an important infrastructure for on-chain finance in Europe.

If in the future, Euro stablecoins not only remain at the issuance stage but further enter payments, transactions, lending, cross-border settlements, and institutional capital management,

then Ethereum may gain stronger network effects.

Conversely, if supply growth ultimately does not translate into actual usage, then the impact of this growth on the fundamentals of ETH may not be as significant as the market imagines.

Therefore, what will be truly worth observing next is whether "supply growth" can be transformed into "usage growth." Follow the public account "Bitcoin Lemon" for daily market analysis, market information, and practical insights.

Summary

Euro stablecoins are becoming a new direction worth attention in this year's stablecoin market.

As of September 7, the total supply of Euro stablecoins is approximately $848 million, with a net increase of about $156 million this year, of which Ethereum absorbed approximately $125 million in new supply, accounting for about 69.4%.

More importantly, by August, the market value of Euro stablecoins had reached a historical high of approximately $776 million, a year-on-year increase of 68.2%, indicating that this market is gradually moving from a niche market into a larger on-chain financial system.

For Ethereum, what truly deserves attention is not "how much Euro stablecoins have risen."

But whether these funds will truly begin to use Ethereum in the future.

If the growth of stablecoins further drives payments, DeFi, trading, and institutional settlements, then the value of Ethereum as on-chain financial infrastructure may continue to strengthen.

If it is merely an increase in supply, without a corresponding rise in actual usage, then the market will need to reassess the actual impact of this growth on ETH.

Thus, the focus should now be on three key data points:

The total supply of Euro stablecoins.

The share of Euro stablecoins on Ethereum.

And the actual on-chain usage of these stablecoins.

These three data points may be more worth watching than merely the short-term fluctuations of ETH. Follow the public account "Bitcoin Lemon" for daily market analysis, market information, and practical insights.

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Follow the public account "Bitcoin Lemon" for daily market analysis, market information, and practical insights.

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