Circle surges after market forecast of stablecoins reaching $2 trillion

Shares of #Circle (CRCL) – the issuer of USDC – rose 14% to $228, after financial analysis firm Seaport Global issued a buy rating with a price target of $235 and called Circle a "top disruptor in the crypto world."

The main momentum comes from the U.S. Senate passing the GENIUS Act, paving the way for the first federal legal framework for USD-pegged stablecoins. This is extremely positive news for Circle and Coinbase, which are sharing profits from $61.2 billion in reserves of $USDC .

Seaport predicts the stablecoin market will grow significantly from $260 billion to $2 trillion, with Circle being the leading factor. The company's revenue is expected to increase by 30% each year, with a gross margin of about 40%.

However, Circle currently relies up to 99% on interest from reserve assets, increasing potential risks if interest rates decrease in the future.

If the GENIUS Act is signed into law, it will strongly enhance the legal status of USDC, helping to increase stability and trust from investors. Meanwhile, companies like Robinhood – which are less related to stablecoins – have experienced a slight decline at the start of the session.

With support from policy and massive interest rate cash flows, Circle is emerging as a new pillar of the legitimized crypto ecosystem in the U.S. #anhbacong