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Circle, the issuer of the USD Coin (USDC) stablecoin, has seen its market capitalization surpass that of its own stablecoin for the first time.
Circle Outpaces USDC As Market Interest Grows
As of Monday, Circle (CRCL), which recently debuted on the New York Stock Exchange (NYSE), was trading at $263—reflecting a 13% increase in value and pushing the firm’s valuation to approximately $66 billion.
In contrast, USDC, which is pegged to the US dollar, currently holds a market capitalization of around $61 billion, making it the second-largest stablecoin after Tether’s USDT, which commands a significant market cap of nearly $157 billion and a market share of 62%.
The rise in Circle’s stock price indicates a significant confidence among investors, not just in USDC but also in Circle’s broader business model, which includes innovations in tokenization technology, managing corporate funds, and facilitating international payments.
Chuck Zhang, CFO of PolyFlow—a PayFi protocol that connects real-world assets with decentralized finance (DeFi)—commented on the situation, stating that the stock market valuation of Circle reflects more than just USDC issuance.
He emphasized the importance of the stablecoin issuer’s role within a regulated stablecoin ecosystem, its yield-bearing reserve model, and its institutional-grade payment infrastructure.
Optimism In The Stablecoin Sector
Crypto investor Leo Lanza took to X (formerly Twitter) to express that Circle’s market capitalization overtaking USDC suggests that investors are preparing for significant changes in the regulatory landscape for stablecoins.
He noted, “Circle’s market cap just flipped the total value of USDC in circulation. The market knows what’s coming: GENIUS Act, Stablecoin boom, Trillions flowing on-chain.”
Lanza believes that investors are positioning themselves ahead of what he calls the “tokenized dollar supercycle,” which he asserts will primarily operate on the Ethereum (ETH) blockchain.
Enthusiasm for Circle’s performance is echoed by other market observers. One of the co-hosts of the crypto YouTube show The Rollup remarked on X, “Circle is on an absolute tear. Its market cap now has outpaced the total supply of USDC, which is crazy… Wall Street is really jumping to get exposure to these assets.”
This sentiment suggests that other stablecoin firms, including Paxos, Plasma, Stable, and Maple Finance, may also gain from the increased investor interest sparked by Circle’s impressive run.
Circle’s growth trajectory follows its initial public offering (IPO) on June 5, which significantly exceeded market expectations. Originally priced at $31, Circle’s shares opened at $69 and closed above $83 on their first trading day, marking a 163% increase.
While the company successfully raised $1.1 billion during its initial public offering, it is estimated that it missed out on nearly $2 billion in potential capital by not setting a higher initial share price.
Nonetheless, the recent successes have prompted major optimism among investors and other crypto firms that could enter the Nasdaq with plans to go public.
Featured image from DALL-E, chart from TradingView.com
