Circle (CRCL) Valuation Now Surpasses USDC Market Supply

Circle Internet Group has achieved a significant milestone in the financial and crypto markets. Less than two weeks after its initial public offering (IPO), the company’s stock has risen over eight times its IPO price, pushing its market value past $62 billion.

This new valuation now exceeds its stablecoin’s $60 billion circulating supply, USDC.

Circle’s Market Debut Drives Rapid Capitalization Growth

Circle entered the public market at an IPO price of $31 per share, already higher than the expected price range of $26 to $28. The stock price jumped by 168% on the first day of trading, marking the biggest one-day gain for any IPO that raised over $1 billion. 

In under two weeks, Circle’s stock rose to $254.53, more than eight times its IPO price. This sharp increase pushed the company’s market value to about $62 billion, exceeding the $60 billion circulating supply of USDC, the stablecoin issued and managed by Circle.

Circle IPO Pricing Practices Face Renewed Scrutiny

Circle’s strong performance in the stock market has raised questions about how companies decide the price of their shares when they first go public. 

Some experts believe the current system may not always help companies achieve the most value. Before its IPO, Circle planned to sell shares for a lower price. Due to strong investor interest, the company raised the price to $31. 

Even with that increase, the stock rose quickly after trading began, sparking more interest from investors like SBI Group. This suggests that the real demand from investors was much higher than expected, and the shares may have been priced too low initially.

Stablecoin Growth Continues Amid Regulatory Momentum

Circle’s rising valuation coincides with strong year-on-year growth in the stablecoin market. USDC, which remains central to Circle’s operations, has expanded by 90% over the past year. Notably, favorable policy developments fueled part of this market growth. 

The passing of the GENIUS Act, a stablecoin bill recently approved by the Senate, has boosted market confidence. Circle’s stock was trading near $150 before the vote, but it jumped to around $250 after the announcement. 

Although the bill still needs approval from the House of Representatives, political support, including President Donald Trump’s reported willingness to sign it, has added to investors’ confidence around regulatory clarity.

Industry experts believe Circle’s IPO’s success could also influence other crypto companies to go public. In a recent X post, John Deaton, a legal expert in crypto, said Circle’s success might encourage companies like Ripple to follow a similar path.

If the market conditions are right, Ripple Labs, which has almost 40 billion XRP tokens in circulation, could aim for a market value of over $100 billion.