Circle Surges Over 13% Pre-Market — Investor Confidence Soars, But Competition Heats Up
TradingKey – Circle’s stock continues its upward momentum, but two major risks could limit its future growth.
On Monday, June 9, stablecoin leader Circle (CRCL) surged over 13% in pre-market trading, reaching approximately $122 per share.
Last Thursday, June 5, Circle debuted on the NYSE, skyrocketing 235% on its first trading day, with a peak of $104.75. On Friday, CRCL gained another 29%, reflecting strong investor confidence as buyers pushed the stock higher.
If the Federal Reserve lowers interest rates, Circle may struggle with revenue generation, potentially limiting its stock price appreciation. FundStrat’s Head of Digital Asset Strategy, Sean Farrell, warned, "Lower rates could place immense pressure on Circle, as its primary revenue stream comes from interest earned on cash reserves."
The stablecoin market is currently valued at $254 billion, with:
- USDC holding a $61 billion market cap, accounting for 24%
- USDT dominating with 61% market share
With new stablecoin regulations emerging in the U.S., South Korea, and Hong Kong, traditional banking giants — including Deutsche Bank and Santander—are entering the sector, posing fierce competition for Circle’s market share.
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