Circle's IPO: A Subtle Boost for Ethereum?

Circle – the company behind the stablecoin $USDC – just had a spectacular IPO with its stock price rising 165% on the first day, leading to a strong wave of interest from investors. However, analysts suggest that Ethereum is the long-term beneficiary behind this event.

Currently, over 50% of the USDC supply (~$36.7 billion) is operating on $ETH , according to data from DefiLlama. Although Circle has issued USDC on more than 40 different blockchains, Ethereum remains the 'pillar' due to its thriving DeFi ecosystem.

Experts from Bitwise comment: “#IPO of Circle is not only active with Circle or Coinbase (the unit sharing revenue from USDC), but also increases the authenticity and institutional interest in Ethereum. As USDC develops, liquidity and opportunities to build on Ethereum also rise.”

In addition to the #Ethereum core, Circle has also issued about $10 billion USDC on scaling solutions like Arbitrum, Polygon, Base..., reinforcing Ethereum’s central role in the stablecoin infrastructure.

Meanwhile, competitors like Solana hold only about 13% of the USDC supply, while other blockchains like Avalanche, $SUI , and Aptos hold less than 2%.

With Circle going public, investors will delve deeper into the mechanics of stablecoins – and this is closely tied to Ethereum.

⚠️ Risk Warning: Investing in the crypto market and related stocks can be highly volatile. Investors need to assess carefully before making decisions.