Circle Internet Corp. (CRCL) shares surged 20.95% in intraday trading on Friday, continuing the stock's remarkable ascent since its IPO earlier this month. The latest rally comes on the heels of a landmark stablecoin regulation bill passing the US Senate and bullish analyst coverage.
The GENIUS Act, which would establish a federal regulatory framework for US dollar-pegged stablecoins, passed the Senate on Tuesday with bipartisan support. This legislation is viewed as a watershed moment for the digital asset industry, providing much-needed legal clarity and potentially paving the way for mainstream adoption of stablecoins like Circle's USDC.
Adding fuel to the rally, Seaport Research Partners initiated coverage of Circle with a Buy rating and a $235 price target on Friday morning. Analyst Jeff Cantwell cited Circle's position as a top-tier "crypto disruptor" and projected massive growth in the stablecoin market.
"We see the stablecoin 'market cap' potentially reaching $2 trillion over the longer-term, from roughly $260 billion today," Cantwell wrote in his research note. "As this occurs, we see Circle generating annual revenue growth of 25%-30% with ability to drive operating leverage as it scales further."
Circle's USDC stablecoin is well-positioned to capitalize on this expected growth, already boasting a circulating supply of over $61 billion. The regulatory clarity provided by the GENIUS Act, if ultimately signed into law, could accelerate adoption of USDC in both retail and institutional settings.
Friday's surge is a continuation of Circle's breathtaking run since its June 5th IPO. The stock has now skyrocketed over 550% from its initial $31 offering price, reflecting immense investor optimism about the company's future in the rapidly evolving digital asset landscape.
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