Circle's Explosive Stock Growth Thanks to New Washington Policy
Circle's stock broke through a new resistance level on Friday, rising 22% to a historic peak of 250 USD, after Seaport Global first issued a buy rating for the stock. Since listing this month, the stock has increased over 600% since its initial release.
The company behind USDC, the second-largest stablecoin in the cryptocurrency market, is experiencing a boom, especially since the US government officially turned its attention to this sector. This event opens up many long-term growth opportunities for Circle.
Senate Vote Propels Circle Ahead of Competitors
According to Jeff Cantwell of Seaport, the global market for dollar-linked Tokens could expand from the current 260 billion USD to up to 2 trillion USD, creating an opportunity for Circle to grow revenue by approximately 25% to 30% annually. This has pushed the stock price far beyond Seaport's 235 USD prediction.
Jeff noted in a client memo: "We highly value Circle's potential as a top 'breakthrough' player in the crypto sector, with significant growth opportunities in the future." The company's revenue is expected to reach 3.5 billion USD in 2025, up from the projected 1.68 billion USD this year.
US Market Closed, Circle Stock Still Maintains 58% Weekend Surge
Despite the US market being closed on Thursday for Juneteenth, Circle's stock still ended the week with over 58% growth. Since its IPO on June 5th, the stock price has increased by more than 500%. The effect from Coinbase also helped boost the market, with the exchange's stock rising over 4% due to profits from USDC reserves.
Specifically, Coinbase earns 50% interest profit from USDC reserves managed by Circle and 100% from direct reserves on its own platform.
Circle Aims to Build New Payment Network as Tech Giants Eye Stablecoins
In April, Circle announced it is building a payment network system that allows banks and financial institutions to use stablecoins for cross-border money transfers. This system is expected to replace the old transfer system, making transactions faster and more time-efficient.
Meanwhile, Shopify announced they will integrate global USDC payments, allowing merchants and customers to pay using this cryptocurrency without waiting for bank transfer days or facing exchange rate fluctuations. This positions Circle as a direct competitor to Visa and Mastercard in the payment sector.
Jeff predicts Circle will compete directly with these giants, not just in the crypto field but also in the broader payment services industry. Bloomberg analysts currently maintain a buy rating for Circle, while investors have high expectations for the company's expansion potential.
New Policies Open Doors for Banks and Crypto Corporations to Develop
Additionally, the US Congress is advancing the STABLE bill, aimed at clearly regulating dollar-linked Tokens, defining reserves, licensing, and auditing. This provides cryptocurrency companies with a clearer legal environment, minimizing long-standing legal risks.
Alex Thorn of Galaxy Digital emphasized that the GENIUS bill could completely transform dollar cash flow, accelerating payment speeds, enhancing transparency, and expanding dollar dominance in global transactions. The law also protects consumers, clearly regulating collateral assets and providing strict oversight by regulatory agencies.
Meanwhile, tech giants like Amazon, Walmart, Apple, Uber, and Airbnb are actively researching stablecoins, aiming to expand payment ecosystems that are faster, cheaper, and safer in the increasingly developing cryptocurrency era.
