Circle Internet Financial (NYSE: CRCL), the issuer of the USDC stablecoin, has seen its stock price surge more than 288% since its debut on the New York Stock Exchange, capturing the attention of Wall Street and the crypto community. The shares, priced at $31 in the IPO, climbed above $120.51 by 1:07 PM Eastern on Friday, marking a single-day gain of over 45%. The company's market capitalization has now exceeded $23 billion, with trading volume reaching $41.8 million on Friday alone.
Ark Invest Joins the Rally
Notably, Cathie Wood's Ark Invest acquired 4.48 million CRCL shares across three of its funds, signaling institutional confidence. However, social media commentary remains mixed. A user with IPO pricing experience at Goldman Sachs cautioned against chasing the rally, advising investors to wait 90 to 180 days after the IPO for price discovery and the end of lock-up periods. Another user, Solana Legend, predicted that Circle's performance could trigger a wave of crypto IPOs, including Moonpay, Gemini, Kraken, and Phantom—firms with revenues exceeding $50 million and competitive moats.
Sustainability Questions Emerge
Some analysts draw parallels to Coinbase's 2021 IPO frenzy, where initial euphoria gave way to significant corrections. Circle's dependence on USDC circulation and crypto market activity raises questions about long-term valuation. While the IPO success provides a barometer for other crypto-native companies, investors are advised to exercise caution amid the volatility.