Euro Coin (EUROC) Is Now Available On The Avalanche blockchain
If you are in crypto, you use stablecoins more or less. Stablecoin issuer Circle launches Euro Coin (EUROC) on Avalanche blockchain. They introduced Euro-based stablecoin on the Ethereum blockchain in 2022. Now EUROC is available on Avalanche.
According to stablecoin issuer Circle, they take a multi-chain strategy for EUROC and as a part of that strategy, they introduced Euro Coin (EUROC) on Ethereum first and then on Avalanche blockchain. It will increase liquidity and users can easily transact EUROC and USDC.
The transaction fee on the Ethereum blockchain is huge. Users may not feel comfortable making more transactions. But on the Avalanche blockchain, users can make transactions and use EUROC efficiently and effectively since it will be more cost-effective.
Euro Coin (EUROC) is backed by euro reserves maintaining a 1:1 ratio. Behind a new EUROC, one Euro is deposited in a bank account. Circle also introduced a protocol to make cross-chain transfers of USDC between Ethereum and Avalanche blockchain.
Most people use USD-based stablecoins. I do not expect the user base of EUROC will increase quickly. It will give more options and people can hold USD-based stablecoin and Euro-based stablecoin.
If you do trading in the crypto market, probably you use stablecoins. You can use EUROC, the user base will increase if more people start using Euro-based stablecoins. You can hold stablecoins to invest in crypto in a bear market.
Instead of exiting the crypto market, you can wait to buy your targeted cryptocurrency at a specific price range and stablecoins can be very useful during this time. When you take a profit in a bull market, you can take it in stablecoins and make your move according to your strategy.
By the way, if you are scared of the crypto market volatility and risk, holding stablecoins may help you to some extent until you make your next move. But stablecoins are not risk-free whether that's USD-based stablecoin or Euro-based stablecoin. We witnessed the de-pegging of USDC and there is no guarantee that it will not happen again.
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Stable coins are much better for staking purposes.