The stock of Circle (CRCL) is now 540% above its initial public offering (IPO) price, marking one of the fastest climbs ever for a cryptocurrency stock.
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Circle went public on the New York Stock Exchange via an IPO that was held on June 5, and has since skyrocketed. Boston-based Circle is the issuer of the USDC (USDC) stablecoin, the second most widely used stablecoin in the world by circulating value after rival Tether’s USDT (USDT).
Stablecoins are cryptocurrencies whose value is tied to an underlying asset such as the U.S. dollar or price of gold. CRCL stock soared 34% on June 18 on news that the U.S. Senate has passed highly anticipated legislation related to U.S. dollar-backed stablecoins.
Chief Beneficiary
The latest rise in Circle’s share price comes after the “GENIUS Act,” which outlines how U.S. firms can issue and manage fiat-backed stablecoins for payments, passed a vote in the U.S. Senate, putting it a step closer to becoming law.
The legislation still needs to pass the lower House of Representatives, but the Senate vote signals strong bipartisan support for bringing cryptocurrency payments under U.S. regulations. Analysts say that Circle will be a chief beneficiary if the U.S. formally embraces stablecoins as digital cash equivalents.
With its meteoric rise, Circle’s stock now has a market capitalization of $48 billion, far above many other financial technology and payment companies. CRCL stock is currently trading at $199.59 per share.
Is BTC a Buy?
It’s too early for analysts to have ratings and price targets on CRCL stock, and most Wall Street firms don’t rate stablecoins. So we’ll look instead at the three-month performance of Bitcoin (BTC). As one can see in the chart below, the price of BTC has risen 24.66% in the last 12 weeks.
