Stablecoin Surge Shows Crypto Still Matters

Circle, the world’s second‑largest stablecoin issuer, saw its shares leap after announcing a 72 % increase in USDC supply year‑over‑year, boosting its market value to roughly $75 billion.
This growth underscores that stablecoins remain attractive even when the broader crypto market weakens.

Key Highlights

• Partnerships
• Visa and Polymarket now rely on Circle’s payment network.
• Collaboration with Bermuda to launch the first fully on‑chain national economy—a potential game‑changer for government digital currencies.

• Revenue Model & Risk Management
• Primarily earns from investing customer funds in short‑term U.S. Treasury securities.
• Sensitive to federal interest rate shifts.

• Developing its own blockchain platform, Arc, to diversify income streams.

• Historical Context
• Founded in 2013 by Jeremy Allaire.
• Went public in June, just months after the stablecoin regulatory act; stock surged 250 % in the first two days—record for a newly listed company.

Current Performance

• After a steep decline during market downturns and lower interest rates, Circle’s shares have rebounded.
• Analysts believe sustained momentum hinges on:
• Managing rate pressures
• Scaling technology (Arc)
• Defending position in a crowded market