:
$EURT
İmportant ⚠️
EURT depeg.
The main reasons for the depeg are:
Tether's Decision to Discontinue EURT:
Tether announced it would end support for EURT in November 2024. New EURT issuance had already stopped since 2022, and tokens can be redeemed until November 27, 2026. This decision was made due to MiCA regulations (Markets in Crypto-Assets Regulation) in Europe – Tether did not obtain the necessary licenses for MiCA compliance, and the cost/benefit balance was not suitable for EURT.
Low Demand and Liquidity:
EURT's market capitalization has never been high (highest ~500 million USD, currently around ~4-5 million USD). It has been overshadowed by USDT, and competitors like Circle's EURC have taken the lead in the euro stablecoin market. Due to low usage, liquidity has decreased, and arbitrage opportunities have become limited. Redemption Panic and Loss of Confidence:
Following the discontinuation announcement, holders began selling their tokens because they believe there will be no long-term support. The redeeming process is limited, creating selling pressure in the secondary market (exchanges). In stablecoins, discontinuation announcements often trigger a peg because holders want to return to fiat, but liquidity is insufficient. General Stablecoin Peg Mechanics:
In low-volume stablecoins, liquidity shocks, panic selling, and insufficient arbitrage disrupt the peg. This is more pronounced in niche products like EURT – in giants like USDT, reserves and volume maintain the peg. As a result, EURT is currently in a "dying asset" position; it is not expected to return to the peg.
İmportant ⚠️
EURT depeg.
The main reasons for the depeg are:
Tether's Decision to Discontinue EURT:
Tether announced it would end support for EURT in November 2024. New EURT issuance had already stopped since 2022, and tokens can be redeemed until November 27, 2026. This decision was made due to MiCA regulations (Markets in Crypto-Assets Regulation) in Europe – Tether did not obtain the necessary licenses for MiCA compliance, and the cost/benefit balance was not suitable for EURT.
Low Demand and Liquidity:
EURT's market capitalization has never been high (highest ~500 million USD, currently around ~4-5 million USD). It has been overshadowed by USDT, and competitors like Circle's EURC have taken the lead in the euro stablecoin market. Due to low usage, liquidity has decreased, and arbitrage opportunities have become limited. Redemption Panic and Loss of Confidence:
Following the discontinuation announcement, holders began selling their tokens because they believe there will be no long-term support. The redeeming process is limited, creating selling pressure in the secondary market (exchanges). In stablecoins, discontinuation announcements often trigger a peg because holders want to return to fiat, but liquidity is insufficient. General Stablecoin Peg Mechanics:
In low-volume stablecoins, liquidity shocks, panic selling, and insufficient arbitrage disrupt the peg. This is more pronounced in niche products like EURT – in giants like USDT, reserves and volume maintain the peg. As a result, EURT is currently in a "dying asset" position; it is not expected to return to the peg.
