Price Review

Figure:https://www.tradingview.com/symbols/NYSE-CRCL/

Circle Internet Financial (stock code: CRCL) officially listed on the New York Stock Exchange on June 5, 2025, with an issue price of $31. Within a few days of listing, the stock price soared due to market speculation and media attention, reaching a high of $298.99 by the end of June, an increase of over 860%. However, as funds flowed back and market sentiment cooled, the current price has fallen to about $181.29, with a single-day decline of over 15%.

This round of extreme volatility shows that the market has a high level of attention on CRCL stocks, but it also exposes the vulnerability of its valuation in the absence of profit support.

Rise and the reasons behind it

The rise of CRCL stock is not accidental; there are several core driving factors behind it:

1. stablecoin market growth
   Circle is the issuer of USDC. USDC is currently the second largest stablecoin in the world, with a market value of over 30 billion USD, widely used in various scenarios such as DeFi, cross-border settlement, and exchanges. As the concept of digital dollars gradually gains recognition, USDC is seen as a strong competitor to the “official compliant stablecoin” of the United States.
2. The advantages of compliance are prominent.
   In June 2025, the U.S. Senate passed the GENIUS Act—the first federal bill to provide comprehensive regulatory guidance for stablecoin issuance. Circle has clearly stated that it will fully cooperate with regulators and has applied to become a registered electronic payment institution, which has greatly enhanced market confidence.
3. Investment institutions strongly support
   Circle is backed by major shareholders such as Coinbase and BlackRock, with a pre-IPO valuation reaching 9 billion USD. This listing has further attracted funds like ARK Invest, driving up short-term demand.

Investor focus

Although the rise attracts attention, novice investors should focus on the following points:

1. Profitability has not yet been validated.
   Although Circle has a large business volume, it has not yet achieved profitability. Its main revenue comes from interest income and USDC reserve management. If the Federal Reserve lowers interest rates in the future, its profit sources will be directly impacted.
2. Competition intensifies
   PayPal launched PYUSD, Tether continues to expand its share, and the upgraded version of MakerDAO’s Dai all pose a threat to the USDC market. Additionally, if the U.S. Treasury supports bank-issued stablecoins, Circle may also be marginalized.
3. High valuation risk
   The current price-to-sales ratio (P/S) of CRCL is significantly higher than that of its peers, and the market will pay more attention to the sustainability of its revenue and profitability growth after the enthusiasm fades.

Risk Warning and Outlook

In the short term, CRCL stock has entered a technical adjustment period and may fluctuate between 150 and 200 dollars. If the market continues to digest favorable policies and valuation bubbles, investors may consider gradually positioning themselves. In the medium to long term, if Circle can expand its global stablecoin ecosystem and achieve profitability, its stock may regain upward momentum.

It is recommended that novice investors observe the performance of 1-2 quarterly financial reports before deciding whether to get involved. For those with a high risk tolerance, this current stage can be considered as a long-term trend trading variety to pay attention to.