The supply of euro-denominated stablecoins surged by 168% in 2025, reaching €425 million, up from €158 million at the beginning of the year. This significant growth is attributed to increased regulatory clarity provided by the Markets in Crypto-Assets (MiCA) framework, alongside rising adoption in decentralized finance (DeFi) and growing demand for digital euro alternatives. Key euro stablecoins driving this expansion include EURS, EURT, and agEUR. Despite the rapid growth, the euro stablecoin market remains fragmented, with no single issuer holding a dominant position. The European Central Bank's ongoing Digital Euro project could potentially reshape this dynamic market, introducing new competition and regulatory considerations.