This month, cryptocurrency payment giant Circle successfully went public on the New York Stock Exchange, marking another blockchain core enterprise entering the mainstream financial market. Since its first day of trading, Circle's stock price has continuously risen, reflecting investors' high recognition of its stablecoin business prospects and regulatory compliance capabilities. As the issuer of the USDC stablecoin, this IPO is not only a key step in Circle's commercialization transformation but is also seen as an important milestone for the "normalization" of the crypto industry.
However, Circle's path to listing has not been smooth. As early as 2021, Circle announced plans to go public through a merger with SPAC company Concord Acquisition, with a valuation of up to $9 billion, but this plan was canceled in early 2022 due to market turmoil and regulatory uncertainty. Subsequently, the company chose to restructure its financial framework, promote compliance and transparency, and proactively accept regulatory scrutiny in the U.S. Between 2023 and 2024, as the crypto industry gradually warmed up, Circle regained confidence in the capital markets through the global growth of the USDC stablecoin.
In the second half of last year, Circle restarted its IPO plan and officially listed on the New York Stock Exchange this month. Before the listing, the company disclosed that it had over $50 billion in USDC circulating market value globally, strong reserve management capabilities, and deep cooperation with traditional financial giants such as Visa and BlackRock.
Since its listing on June 5, Circle's stock price has soared, demonstrating strong market performance:
IPO boom: The opening price was $69, far above the issue price of $31, and at one point rose over 100% during trading, closing on the first day at $83.23, an increase of nearly 168%.
Continued surge: The stock price increased more than fourfold in the first week, breaking through $134 at one point, and subsequently reached new highs multiple times, peaking at $165.6 on June 16.
Reaching new heights: On June 23, the intraday high reached $298.99, with an increase of over 210% since the IPO.
As the issuer of the stablecoin, Circle does not rely on the price fluctuations of crypto assets for profit but builds its growth logic through "infrastructure-type businesses" such as stablecoin clearing, compliant financial services, and integration with traditional financial systems. Compared to the volatile exchanges, mining companies, or Web3 platforms, such enterprises are considered more suitable for the IPO path due to their predictable business and regulatory friendliness.
In the future, on-chain data analysis companies, wallet service providers, payment channels, cross-chain protocols, and compliant custody institutions are also expected to leverage Circle's experience to promote their listing processes.
Moreover, Circle's successful listing may prompt investors to readjust their valuation system for the crypto market, shifting from focusing solely on token prices to paying attention to infrastructure companies that "provide stable returns and real service capabilities," which has positive implications for the long-term development of the entire industry.
In stark contrast, against the backdrop of recent geopolitical tensions, the overall cryptocurrency market has fallen into turmoil, with mainstream crypto assets like Bitcoin (BTC) and Ethereum (ETH) experiencing significant pullbacks. Bitcoin briefly fell below $100,000 last weekend, reaching its lowest point since May of this year.
It wasn't until this Tuesday, when former U.S. President Trump announced a temporary ceasefire agreement between Iran and Israel, that the cryptocurrency market breathed a sigh of relief.
In the 24 hours leading up to Tuesday at 4 PM, Bitcoin rose by 8.24%. Mainstream altcoins also rebounded, with Ethereum (ETH) up 9%, Ripple (XRP) up 7%, and Solana (SOL) up 10%. Several crypto sectors were positively impacted, with the "meme" sector rising 9%, including Dogecoin (DOGE), Shiba Inu (SHIB), and PEPE rising 9%, 10%, and 12%, respectively; the artificial intelligence (AI) token sector also benefited from the ceasefire progress, rising overall by 9%.
According to Trump, the ceasefire will occur in two phases within 24 hours, with Iran first halting all military actions, followed by Israel stopping all military actions 12 hours later. He also revealed that Iran had notified the U.S. in advance before attacking the U.S. military base in Qatar. Since the attack did not result in any casualties, Trump described the action as "de-escalatory."
This contrast reflects the market's differing risk preferences for "crypto infrastructure" versus "crypto assets." While the overall market is under pressure due to war and risk-averse sentiment, Circle, as the issuer of the USDC stablecoin, has a business that is relatively less correlated with market volatility. Investors are more focused on its advantages in stablecoin clearing, fiat-backed asset management, and compliance capabilities. Circle's growth represents the trend of "compliant crypto finance," rather than speculative digital assets.
Additionally, during times of escalating geopolitical conflict, the demand for stablecoins often surges. Stablecoins like USDC are widely used for hedging, cross-border transfers, and as a substitute for the dollar. Therefore, Circle's counter-cyclical rise not only reflects the company's fundamentals but also indicates a repricing process of traditional capital regarding the role of "infrastructure providers" in the crypto industry.
Currently, the global stablecoin market value has exceeded $160 billion. Although the long-standing leader Tether (USDT) still holds over 65% market share, its opaque financial structure and regulatory gaps are gradually becoming concerns for capital and institutional investors.
In summary, Tether's current advantages and challenges can be summarized as follows:
Advantages:
Market leader: USDT's market value remains significantly higher than USDC, with data close to $114 billion as of June 2025.
Strong on-chain liquidity: USDT has the most extensive use cases on mainstream chains like Ethereum, Tron, and Solana, with deep penetration in DeFi, exchanges, and cross-border payments.
Dominance in the Asian market: Especially in emerging markets (such as Southeast Asia, Latin America, and the Middle East), USDT is seen as a "dollar substitute" and is the main tool for OTC trading and capital hedging.
Ongoing challenges:
High compliance risk: Tether has not obtained major financial regulatory licenses in the U.S., and its historical audit transparency is insufficient, facing ongoing warnings from U.S. and European regulatory authorities.
Dependence on the black and gray markets: A large amount of USDT operates in gray areas, such as high-risk cross-border capital flows, exposing it to policy risks.
Pressure from Circle and PayPal's "compliance breakthrough": After Circle's IPO, the capital market has shown more positive expectations for the "legitimacy" and "regulatory compliance" of USDC.
Overall, Tether still firmly holds the top position in the stablecoin market, but compliance and regulatory pressures are increasing. In contrast, Circle, with its successful IPO and more standardized operations, is rapidly expanding its market share.
Related: Bitcoin (BTC) rebounds to $106,000 amid Middle East ceasefire and interest rate cut expectations
Original article: “Crypto Assets Plummet, Circle Stock Doubles: Stablecoin Sector Enters Valuation Shift Window”
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