Circle Internet Group (CRCL) Stock: Stablecoin Giant's IPO Success Sparks Market Frenzy

TLDR

Table of Contents

Circle Internet Group (CRCL) surged nearly 170% on its first trading day and is now up almost 600% from its IPO price, reaching a $50 billion market valuation
The stablecoin company’s massive IPO success is driving renewed interest in public offerings, with experts calling its performance “unprecedented” for billion-dollar IPOs
Circle shares experienced a 15% pullback over three days this week before resuming their rally with a 7% gain on Thursday
Coinbase (COIN) benefits directly from Circle’s success, receiving half the revenue from USDC reserves and 100% interest on USDC held on its platform
Federal Reserve rate decisions and pending stablecoin regulation legislation are key factors influencing both companies’ stock performance

Circle Internet Group has become Wall Street’s latest sensation after delivering what experts are calling an unprecedented IPO performance. The stablecoin company’s shares have rocketed more than 600% since going public on June 5.

The company surged nearly 170% on its first day of trading. This explosive debut has pushed Circle’s market valuation to $50 billion after raising over $1 billion in its offering.

“If you take into account Circle’s size, the first-month performance is unprecedented,” says Matt Kennedy, a senior strategist at Renaissance Capital. “Billion-dollar IPOs do not historically behave like this in the first month of trading.”

Circle’s success is part of a broader IPO revival hitting the markets. Fintech Chime Financial, drone maker AIRO Group Holdings, and space exploration company Voyager Technologies all went public in June with solid debuts.

The stablecoin issuer experienced some volatility this week, with shares falling 15% over three days. However, the stock resumed its rally on Thursday with a 7% gain.

This pullback came as investors weighed speculation around crypto regulation and the upcoming Federal Reserve rate decision. The company’s business model is directly tied to interest rates since it earns income on reserves backing its USDC stablecoin.

Coinbase Connection Drives Additional Interest

Circle’s success has created a ripple effect benefiting Coinbase, the crypto exchange operator. Coinbase serves as the main distribution platform for USDC, Circle’s popular stablecoin.

Market cap:
Circle: $72 billion
Coinbase: $78 billion
Coinbase receives 50% of Circle's revenue. pic.twitter.com/7HoApXarCA
— Brew Markets (@brewmarkets) June 23, 2025

The relationship between the two companies runs deep financially. Coinbase receives half of the revenue generated from the interest earned on Circle’s USDC reserves. It also makes 100% of the interest on any USDC held directly on its own platform.

While Circle fell 15% over three days, Coinbase gained the same amount during that period. This suggests investors may have rotated between the two crypto-related stocks.

Coinbase has benefited from multiple Wall Street price target increases this week. Bernstein and Oppenheimer both raised their targets for the exchange operator.

The crypto exchange is on pace for a 52% monthly gain. This would mark its best month since November and its first three-month rally since the end of 2023.

Regulatory Landscape Shapes Future Outlook

Federal Reserve Chair Jerome Powell’s recent testimony to Congress has investors watching closely. Powell faces pressure from President Trump and White House officials to lower interest rates.

Two key Fed officials have indicated they will likely favor a rate cut as soon as July. Lower rates could dampen Circle’s earnings since the company depends on interest income from its reserves.

Circle holds its USDC backing reserves primarily in cash at banks and short-term U.S. Treasury securities. These holdings generate the interest income that forms a key part of the company’s revenue model.

The regulatory environment for stablecoins continues evolving rapidly. The GENIUS Act, which seeks to establish a regulatory framework for stablecoin use, passed the Senate last week.

The bill now heads to the House of Representatives. The House is working on its own stablecoin legislation called the STABLE Act.

Market experts expect Circle’s IPO success to encourage more companies to go public. Renaissance Capital notes there are more than 1,250 private unicorns worldwide that could potentially list.

Design software firm Figma, robo-advisor Wealthfront, and crypto exchange Gemini Trust have all filed for confidential IPOs recently. Buy now, pay later firm Klarna and defense tech firm Anduril Industries are also expected to go public soon.

Circle’s unprecedented performance has established new benchmarks for billion-dollar IPOs. The company’s current trading price reflects investor enthusiasm for the growing stablecoin market and crypto infrastructure plays.

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