$USDC Circle's IPO Short-Term and Long-Term Impact on USDC**

**Short-Term Impact:**

Circle's IPO may enhance market confidence in USDC in the short term, driving further growth in its circulation (currently around $60 billion). The increase in transparency brought by the IPO may attract more institutions to adopt USDC, especially in the compliance-sensitive financial sector. However, if the market becomes concerned about Circle's dependence on high interest rates (99% of revenue comes from reserve interest), there may be volatility in the short term.

**Long-Term Impact:**

In the long run, Circle's IPO could accelerate the integration of USDC in traditional finance and DeFi, solidifying its position as the second-largest stablecoin (market share 26%). If regulation clarifies that stablecoins are not securities, USDC may become the preferred choice for cross-border payments and on-chain finance. However, Circle needs to reduce its reliance on interest income and expand into new businesses such as payments and tokenized assets to address potential risks from declining interest rates.