$ETH $ARB $USDC #TrumpVsMusk #MarketPullback #CircleIPO #CUDISBinanceTGE #BlackRockETHPurchase According to Decrypt, Circle's $1.1 billion IPO on Thursday not only reflects the growing interest from Wall Street in stablecoins, but it could also strengthen institutional confidence in Ethereum.

Ethereum - The dominant platform for USDC

According to DefiLlama:

  • Although Circle issues USDC on more than 40 networks, over 50% of the circulating supply ($36.7 billion) exists on Ethereum

  • Solana ranks second with $8 billion USDC (~13%), while Avalanche, Sui, and Aptos each account for less than 2%

  • Ethereum scaling solutions like Polygon, Arbitrum, and Base share around $10 billion USDC

Reasons Ethereum benefits

Juan Leon - Senior investment strategist at Bitwise explained:

  • Ethereum dominates in DeFi, where USDC is used as the primary liquidity medium

  • "The surge of USDC will bring greater liquidity to DeFi, encouraging developers to build on Ethereum"

  • Coinbase (revenue-sharing partner for USDC with Circle) will also benefit

Market developments

  • Circle's stock price: Increased 165% on the first day of IPO ($31 → $83.22), and continued to rise 38% on Friday to $114.50

  • Ethereum is currently trading around $2,500 (down 3% in 24h)

  • Ethereum ETF recorded a net inflow of $11 million on Thursday, down from a peak of $110 million on Tuesday

Institutional perspective

Gerry O’Shea - Hashdex commented:

  • The IPO will help traditional investors understand more about the blockchain infrastructure behind stablecoins

  • "Ethereum will be noted as the technology platform supporting stablecoins"