Circle Stock Surges on New Washington Policy
Circle shares broke through new resistance on Friday, rising 22% to an all-time high of $250, after Seaport Global first issued a buy rating on the stock. The stock has surged more than 600% since its debut this month.
The company behind USDC, the second-largest stablecoin in the cryptocurrency market, is in a booming phase, especially since the US government officially turned its attention to the sector. This event opens up many growth opportunities for Circle in the long term.
Senate vote pushes Circle ahead of competitors
The global market for these dollar-linked tokens could expand from the current $260 billion to $2 trillion, opening up an opportunity for Circle to grow revenue by about 25% to 30% per year, according to Seaport's Jeff Cantwell. That has pushed the stock price well above Seaport's $235 forecast.
“We appreciate Circle’s ability to be a leading ‘disruptor’ in the crypto space, with significant growth opportunities ahead,” Jeff said in a note to clients. The company’s revenue is expected to reach $3.5 billion by 2025, up from an expected $1.68 billion this year.
US markets close, Circle shares still up 58% at the end of the week
Despite the U.S. market being closed on Thursday for Juneteenth, Circle stock ended the week up more than 58%. The stock has risen more than 500% since its IPO on June 5. The Coinbase effect also helped boost the market, with shares of the exchange rising more than 4% on gains from its USDC reserves.
Specifically, Coinbase earns 50% of its interest income from USDC reserves managed by Circle and 100% from reserves held directly on its platform.
Circle Aims to Build New Payments Network as Tech Giants Snatch Stablecoins
In April, Circle announced that it was building a payments network that would allow banks and financial institutions to use stablecoins to transfer money across borders. The system is expected to replace legacy wire transfers, making transactions faster and more time-efficient.
At the same time, Shopify announced that it would integrate USDC payments globally, allowing merchants and customers to pay with the cryptocurrency without waiting for bank transfer days or facing exchange rate fluctuations. This makes Circle a direct competitor to Visa and Mastercard in the payments space.
Jeff predicts that Circle will compete directly with these two giants, not only in the crypto space but also in the larger payments industry. Bloomberg analysts currently maintain a buy rating on Circle, while investors have high expectations for the company's expansion potential.
New policy in regulations opens the door for banks and crypto corporations to develop
In addition, the US Congress is also promoting the STABLE bill, which aims to clearly regulate dollar-linked tokens, reserve regulations, licenses and audits. This helps crypto companies have a clearer legal environment, minimizing long-standing legal risks.
Galaxy Digital’s Alex Thorn stressed that the GENIUS bill could radically change the way dollars flow, speeding up payments, increasing transparency, and expanding the dollar’s dominance in global transactions. At the same time, the law would provide consumer protection, clear collateral requirements, and strong regulatory oversight.
Meanwhile, tech giants like Amazon, Walmart, Apple, Uber and Airbnb are all actively researching stablecoins, aiming to expand the payment ecosystem to be faster, cheaper and safer in the increasingly growing cryptocurrency era.
Source: https://tintucbitcoin.com/circle-tang-gia-ky-luc-250-usd/
Thank you for reading this article!
Please Like, Comment and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
