Circle Internet Group (CRCL) has seen a 749% increase from its initial public offering (IPO) price earlier this month. On Monday, CRCL surged over 9.64%, bringing its share price to $263.45 and lifting its market capitalization to $63.89 billion.
In comparison, the market cap of Circle’s flagship stablecoin, USDC, now sits at $61.675 billion, meaning Circle’s valuation has surpassed its stablecoin’s by 3.6%, or roughly 103.6% of USDC’s total market cap.
Circle’s remarkable performance follows its IPO debut on June 6 at $31 per share, which saw shares nearly triple in value on the first day of trading.
Circle’s stock extended its meteoric rise late last week, boosted by growing investor enthusiasm after the US Senate passed the GENIUS Act, a legislative framework designed to regulate stablecoins. The bill, officially named the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, aims to provide clear rules around stablecoin issuance and use.
Following the Senate’s approval on Tuesday, Circle shares jumped 33% on Wednesday. The stock has now gained over 500% since its June 5 debut and is on track to close the week up more than 58%.
Despite the sharp rise, market analysts believe there’s still “upside”. Jeff Cantwell of Seaport Research Partners maintained a bullish stance, assigning a ‘Buy’ rating and setting a price target of $235, about 18% above the stock’s Wednesday closing price of $199.59, as reported by Market Watch.
It is worth mentioning that the GENIUS Act is expected to significantly reshape US dollar-based digital payments, and Circle’s rally could be attributed to this groundbreaking decision. Alex Thorn, Head of Research at Galaxy Digital, recently shared that the bill could “meaningfully upgrade dollar payment rails”, helping to accelerate settlement times, enhance transparency, and bolster US dollar dominance globally.
Thorn emphasized the bill’s dual focus on consumer protection and innovation, noting it provides a regulatory framework for using public blockchains to transfer dollars worldwide. This, he said, could serve as a bridge between traditional finance and decentralized finance (DeFi), which in turn, opens the door for better adoption of cryptos like Bitcoin.
Investor interest in stablecoins is also being fueled by growing corporate interest. According to reports, major companies including Amazon, Walmart, Uber, Apple, and Airbnb are reportedly exploring the use or even issuance of their own stablecoins.
Also Read: JPMorgan Chase Files Trademark for Potential Stablecoin “JPMD”
