Trump has assumed the position with a demolition ball, and its unpredictability acts, both nationally and abroad, have only hindered the state of the dollar as a option of option reserve. In the cryptographic world, this only means one thing: the stablecoins, with the domain of the USD domain, leaving a void for other currencies to be treated. And of them, they could be the fast -growing EUR coins that cool them harder.
Let us step back. Since the inauguration of Trump, the dollar has fallen to a minimum of three years against a basket of important currencies, decreasing by approximately 5% for approximately six months. A combination of capricious commercial policy, fiscal bets without FECK and, in general, international antagonism has besieged the US market, condemning its shares, increasing their treasure yields and taking an ax to the dollar. The prominence of the United States as the strongest and most stable economy has been tested. And we have even seen an exchange “anywhere, but the United States trade” comes to light as a result.
With the economy and markets of the United States so volatile, investors have fled, as usual, to safe assets such as gold to mitigate any loss. But surprisingly, the euro has also increased the ranks: according to a recent report of Reuters, the central bankers around the world are now looking at Gold, the RenminBi and the assets of the euro as the Choice reserve. The world is diversifying away from the dollar, and that will surely be reflected in Defi.
Of course, said that, I am not talking about a complete overtaking here.
In the world of Stablecoin, USD is very king. Tether dominates almost 70% of the market, and we have even seen Circle in the headlines to ensure an OPI of $ 5.4 billion. But as the dollar decreases, especially to the point that it makes losses against emerging markets and the G10, I think the market will be expanded. USD monopolies may not be so strong.
Currently, there are 12 prominent stablecoins of Europes and 56 homologists from USD, a big difference.
But as the euro constitutes its losses and gains more strength, who can say that these coins will not compete? With an enthusiastic fiscal policy, a stronger defense expense and, of course, the impulse of capital flow, the euro has risen to almost $ 1.20. And if Trump continues on his current path, I hope this only goes up more.
Nor is it just a defolarization trend to take into account. The EU has opened more and more to cryptography, this year cementing the final provisions of the Mica framework, giving cryptographic emitters the ability to achieve licenses and establish themselves in the regulated European market. Tether does not comply with Mica, giving alternative coins, including those of EUR, such as ERC, an opportunity to strengthen its participation in the regional market.
Through that, the EU has subsequently adopted a more favorable and support position towards cryptographic emitters. OKX, Crypto.com, Coinbase and soon maybe even Gemini are all crypto emitters and exchanges with the point of receiving EU approval. Forget Trump’s votes to make the United States the “cryptographic capital of the planet.” The EU is up to date.
Europe is no longer anti-innovation, bureaucratic monster that once was. His past skepticism has been eliminated, he opened its doors to digital assets, and beyond that, according to Christine Lagarde, it is ambitious enough to press for its “global moment in euro.” He is really capitalizing Uncle Sam’s misfortunes, and I don’t see any plausible reason about how this will not be reflected in the Stablecoin market.
I understand that the attitude towards Stablecoins is still mixed. The international settlement bank has recently presented them as a “risk of financial stability.” Even so, global market capitalization of the widest ecosystem recently reached a maximum of more than $ 250 billion. You cannot deny the size, popularity and attractiveness of the market. And they are certainly more practical than the tokenized coins, since the Bis Agora project is trying to advance.
As such, I do not see that the Stablecoin market is contracted in the short term. And while Trump continues his heavy approach and Europe take advantage of the consequences, I can only see the emitters deviate more and more from EUR coins. Complete disdain is far from realistic, but while the euro remains in its ascending trajectory, investments and transactions will also do through the continent and its currency.
By 2028, and with that, I mean the end of the Trump term. I predict that we will see that more stable of EUR Songuers come out to the surface, and so much that they will even threaten their American counterparts. The recession risks, the market risks of the bears and, in general, the lack of confidence of investors have brought the dollar to the crisis.
Europe’s time is now.
