Circle (CRCL) just experienced a "banana peel slip" as the stock fell 9% to 139 USD 🛬. The reason? Investor Omar Kanji warned that if the Fed cuts interest rates by 100 basis points in September, Circle could "evaporate" 618 million USD in revenue – equivalent to 23% of total income.
Since a large portion of earned money comes from the yield on the secured bond $USDC , Circle is "super sensitive" to interest rates. The solution? Increase the USDC supply by an additional 28 billion USD – sounds easy, but the wallet holders are probably... not ready yet 💸.
In the meantime, Circle managed to "launch" the Layer-1 Arc blockchain project running EVM, using USDC as gas. Hope Arc will "rev up" the testnet this year, as the stock price is gradually cooling down after previously skyrocketing 400% to a peak of 298 USD and then... plummeting.
