Circle’s market cap peaked at $77 billion, nearly matching Coinbase and the total USDC in circulation.
The GENIUS Act’s Senate approval fueled investor interest, benefiting both Circle and Coinbase stocks.
Coinbase receives around 50% of Circle’s USDC reserve income, maintaining strong revenue from USDC growth.
Circle Internet Financial has surged to a new market valuation milestone after its stock, CRCL, soared sharply on Monday. The stablecoin issuer, which went public on June 5, is now approaching the market capitalization of Coinbase. Shares rose by 9% in Monday’s session, closing at $263 after briefly touching $298 in early trading. This marks a nearly 750% gain from its $31 IPO price, putting Circle’s valuation close to $77 billion at peak, just shy of Coinbase’s $77.8 billion.
Circle’s rally mirrors rising investor demand in the stablecoin sector, especially for USDC, which remains the second-largest dollar-backed token. USDC’s market capitalization stands at around $61.3 billion. The growth in CRCL’s stock also pushes its value close to the total USDC in circulation. This alignment between corporate valuation and token supply drew attention from multiple market analysts.
GENIUS Act Approval Triggers Sector-Wide Movement
One major trigger behind the rally was the U.S. Senate’s approval of the GENIUS Act last week. The bill advances federal rules for fully-backed stablecoins. Both Circle and Coinbase stocks jumped after the announcement. The bill, pending further action from the House, has been linked to future market growth. President Donald Trump recently stated he wants the legislation finalized by August.
The firms current valuation now places it alongside major financial technology players. Robinhood stands at $68 billion, Nubank at $59 billion, and Block at $38 billion. Despite that, Circle is trading at significantly higher valuation multiples. According to Artemis CEO Jon Ma, Circle trades at 32 times revenue, 80 times gross profit, 152 times EBITDA, and 285 times earnings.
https://twitter.com/jonbma/status/1937168114552017021 Coinbase Still Benefits from USDC Growth
The rise also casts a spotlight on Coinbase, which receives about 50% of the interest income from USDC reserves as noted by TJ Kawa on X. According to public filings, Circle paid over 60% of its gross USDC reserve income to Coinbase in 2024. Any increase in USDC supply or front-end yields boosts Coinbase’s revenue under the agreement.
https://twitter.com/TJ_Kawa/status/1937174967109709931
Retail interest in CRCL has been a driving force behind its upward trend since the IPO. The rally has drawn comparisons to other high-momentum stocks. Analysts believe that the recent moves may not align with underlying business fundamentals, especially as Coinbase maintains broader revenue streams and diverse operations.
Circle’s rapid climb in valuation places it on nearly equal footing with Coinbase and USDC’s market size. However, several analysts expect that valuations across the sector may realign as excitement stabilizes.
