According to Golden Finance, in the current context where cryptocurrencies and traditional financial markets are constantly integrating, the share price performance of Circle, the “first stablecoin stock”, has attracted much attention. On June 9th, Circle’s US stocks showed a strong upward trend in pre-market trading, with an increase of more than 13%. On the previous trading day, its closing price rose by nearly 30%, continuously attracting the market’s attention.
Circle, the issuer of USDC, the world’s second-largest US dollar stablecoin, officially listed on the New York Stock Exchange on June 5th, Eastern Time, under the stock code “CRCL”, and has since caused a stir in the capital market. Its performance on the first day of its IPO was truly astonishing. The opening price soared by 122.58% compared to the issue price of $31, reaching a high of $103.75 during the trading session. After triggering a temporary circuit breaker, the increase continued to expand, and it finally closed at $83.23, with a single-day increase of 168.48%. Its market value soared to $18.356 billion. This achievement has set a new record for the first-day increase of over 100 million US dollars in ipos in the United States since 2021.
Circle’s recent continuous rise in stock price is supported by many key factors. From an industry perspective, the cryptocurrency market as a whole has shown a recovery trend recently. The prices of crypto assets such as Bitcoin have rebounded, and market confidence has been somewhat restored, creating a favorable external environment for the rise in Circle’s stock price. Meanwhile, the changes in the regulatory environment in the United States have also injected a strong impetus into its development. The GENIUS Act passed by the US Senate has clearly defined the regulatory framework for stablecoins, requiring that reserves must be 100% cash plus US Treasury bonds. This is undoubtedly an “official certification” for Circle, which has always adhered to a compliant approach, greatly enhancing market trust in it.
In terms of Circle’s own business model, its core product USDC has unique advantages. Each issued USDC is backed by a $1 fiat currency reserve. Circle stores these reserves in safe short-term assets, such as Bank of America deposits and short-term US Treasury bond funds managed by BlackRock, which can generate considerable interest income in the current high-interest-rate environment. In 2024, Circle’s total revenue was approximately 1.676 billion US dollars, of which 99% (about 1.661 billion US dollars) came from interest income generated by USDC reserves. With the continuous growth of USDC circulation, from the beginning of 2024 to the end of May 2025, USDC circulation increased from 32 billion US dollars to approximately 60 billion US dollars, bringing more substantial profits to Circle and thereby driving up its stock price.
Furthermore, Circle has gained the favor of many institutional investors during its listing process. Its IPO subscription multiple exceeded 20 times. The top 25 accounts occupied 70% of the subscribed stocks, and traditional capital giants such as BlackRock and ARK Invest were deeply involved. The large-scale entry of institutional investors not only brought Circle sufficient funds but also, through its own market influence, attracted more investors’ attention and raised the overall market expectations for Circle.
However, Circle has also faced some challenges during its development process. Although it holds a leading position in the compliant stablecoin field, the competition in the stablecoin market remains fierce. Tether, the world’s largest stablecoin issuer USDT, still holds an advantage in market share, and Tether is also accelerating its compliance process, which poses a certain competitive threat to Circle. Meanwhile, Circle’s revenue is highly dependent on the scale of USDC reserves and the interest rate level. If interest rates decline in the future, its net profit may be significantly affected. For instance, some analyses point out that if the interest rate drops by 1% in the future, Circle’s net profit will decrease by approximately 207 million US dollars. Moreover, Circle still relies heavily on a few partners such as Coinbase for the distribution of USDC. If there are any changes in the cooperative relationship, or if it encounters large-scale redemptions, technical malfunctions and other issues, it may trigger a crisis of market trust and have an impact on the stock price.
Looking ahead, with the further implementation of the “GENIUS Act” and the in-depth penetration of USDC in more scenarios such as cross-border payments and on-chain finance, Circle is expected to achieve revenue diversification by continuously expanding its reserve scale and expanding its partners. However, on the road ahead, it is necessary to closely monitor the further refinement of regulatory policies, changes in the market competition landscape, and the management and control of one’s own business risks. The subsequent stock price trend and business development dynamics of Circle will continue to be closely watched by investors and market participants, and are worth keeping an eye on.
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