Circle’s Meteoric Rise Stalls as Wall Street Braces for Stablecoin Showdown
- Keyword Financial
- Jun 25
- 3 min read
Introduction
Circle, the issuer of the USDC stablecoin, recently saw its stock (CRCL) experience a sharp pullback after an extraordinary rally. The company’s shares had surged over 750% from their pre-IPO price of $31 to nearly $300, largely driven by the passage of the U.S. stablecoin bill known as the GENIUS Act. However, on June 24, Circle’s stock dropped by more than 20% from its peak, closing at $222.81, as concerns about rising competition and regulatory warnings from the Bank for International Settlements (BIS) began to weigh on investor sentiment.
The BIS, a central bank body, acknowledged the usefulness of stablecoins for remittances and cross-border payments but cautioned that widespread adoption could undermine national monetary sovereignty and complicate monetary policy. The report also criticized stablecoins for lacking robust monetary arrangements, suggesting they are unlikely to become a foundation for the future financial system. Meanwhile, analysts pointed out that Circle’s valuation had reached an estimated $74 billion, surpassing several major fintech firms, and flagged the company’s high revenue and profit multiples as signs of potential overvaluation.
Looking ahead, Circle faces increasing competition as major financial and retail giants like JPMorgan, Bank of America, Walmart, and Amazon explore their own stablecoin initiatives, especially as the GENIUS Act moves forward. Analysts warn that this influx of new players could erode Circle’s market share and put pressure on its stock price. Despite these challenges, the stablecoin market is projected to grow significantly, potentially reaching $3 trillion by 2030, and some experts see Circle’s stock as a buying opportunity if prices fall to the $120 and $150 range.
