Circle Up 387% — Still Time to Buy?

Move over Bitcoin and Ethereum — the hottest name in crypto right now is $Circle Internet Corp.(CRCL)$ Since going public at $31 on June 5, Circle’s stock has surged to a high of $151 in just 8 trading days — a jaw-dropping 387% gain.

Here are some highlights from our community:

🎉 Huge congrats to @Ted is teddy bear for achieving an impressive $10961 profits with $Circle Internet Corp.(CRCL)$

🎉 Huge congrats to @Joseph80 for achieving an impressive $6544 profits with $Circle Internet Corp.(CRCL)$ call

So, what’s behind Circle’s surge?

First, regulation is heating up. The U.S. Senate is preparing to vote on the GENIUS Act, which would bring clear rules and full backing to stablecoins like USDC. Hong Kong has also passed its own licensing bill, set to take effect in August. The world is racing to regulate stablecoins, and Circle is leading the pack.

Second, Circle CEO Jeremy Allaire is fueling the hype. He called this “the iPhone moment” for stablecoins — suggesting that programmable digital dollars are the next wave of financial innovation.

Finally, Circle is the first major stablecoin company to go public — giving investors a rare opportunity to bet on the future of digital money.

💸 How Circle Makes Money

Circle’s business model is simple but powerful. Almost all of its revenue — 99% in 2024 — comes from interest earned on USDC reserves. When users convert dollars into USDC, Circle invests those funds into U.S. Treasuries and earns about 4.5% annualized. That means the more USDC in circulation, the more money Circle makes.

As of now, Circle has issued over $61.6 billion worth of USDC, making it the second-largest stablecoin behind USDT. But it’s growing much faster — USDC supply is up 40% in 2024, while USDT is up only 10%.

But is the hype getting ahead of reality? Circle’s valuation is sky-high, with a P/E ratio over 150, and 2024 profits actually lower than last year. Some long-term investors are already cashing out.

So… what’s your move? Is Circle still a buy — or has it gone too far? $Circle Internet Corp.(CRCL)$

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