Circle is expected to lead the long-term stablecoin market due to its liquidity, regulatory, and payment infrastructure advantages.
Circle has just announced the development of the Layer 1 Arc blockchain focused on stablecoins, while the Q2 financial report shows strong growth of USDC along with company revenue.
MAIN CONTENT
Circle is forecasted to hold the number 1 position in the stablecoin market thanks to solid liquidity and legal compliance.
Circle's Layer 1 Arc blockchain will launch a testnet in the fall, using USDC as gas.
USDC grew by 90% compared to the previous year, with revenue and reserve income increasing by 53% in Q2 2024.
Why is Circle expected to lead the stablecoin market?
Bernstein – a Wall Street brokerage firm, assesses that Circle has clear competitive advantages in liquidity, regulation, and payment infrastructure, which are expected to help the company maintain a long-term advantage in the stablecoin market.
This combination shows that Circle can effectively cope with increasing volatility and stricter regulations in the cryptocurrency sector. The stock price target remains at 230 USD, with a potential increase of 40% from the current level, with Q3 being viewed as an important period to observe market developments.
What are the highlights of Circle's Layer 1 Arc blockchain and when will it be launched?
Arc is a Layer 1 blockchain focused on building on stablecoins, with plans to launch a testnet expected in the fall of 2024, according to a statement from Circle.
Arc uses USDC as native gas, integrating stablecoin exchange tools, allowing for quick payments along with privacy options. This will create a more efficient and secure DeFi ecosystem while enhancing the practical application of stablecoins.
How is Circle's business performance in Q2 2024?
Circle's Q2 financial report shows that circulating USDC reached 61.3 billion USD, up 90% year-on-year, continuing to rise to 65.2 billion USD as of August 10, 2024.
Total revenue and reserve income increased by 53% to 658 million USD. However, Circle recorded a net loss of 482 million USD due to IPO-related expenses.
Circle expects Q3 to be an important period to monitor the development of the stablecoin market and the operational efficiency of the Arc blockchain.
Bernstein Analysis, August 2024
Frequently Asked Questions
What advantages does Circle have to capture stablecoin market share?
Circle possesses high liquidity, strong payment infrastructure, and strict regulatory compliance, helping maintain a stable position in the stablecoin market.
What cryptocurrency will Circle's Arc blockchain use for gas fees?
Arc using USDC as native gas helps optimize stablecoin-related transactions on the platform.
How has USDC grown in Q2 2024?
Circulating USDC grew by 90% year-on-year to 61.3 billion USD, reaching 65.2 billion USD by August 2024.
Why did Circle still report a loss in Q2 despite revenue growth?
The costs incurred from the IPO caused Circle to report a net loss of 482 million USD, despite revenue and reserve income increasing by 53%.
What does Q3 2024 mean for Circle?
Q3 is seen as a crucial time for the market and the Arc blockchain to demonstrate its operational efficiency.
Source: https://tintucbitcoin.com/circle-giu-nguyen-muc-tieu-230-usd/
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