- Circle stock surged nearly 600% since its IPO, reaching $270 per share and briefly surpassing Coinbase’s and USDC’s market capitalizations.
- Circle’s rise followed U.S. Senate approval of the GENIUS Act, driving broader momentum in crypto-related stocks, including Coinbase.
- Coinbase continues to benefit from its revenue-sharing agreement with Circle, earning 50% of income from USDC reserve holdings.
Circle’s stock price soared on Monday, extending its extraordinary rise since the company’s June 5 IPO. The surge propelled its market capitalization past major industry benchmarks, including Coinbase and its own stablecoin, USDC.
Circle’s Market Cap Briefly Tops Industry Giants
Circle’s stock, trading under the ticker CRCL, jumped 12% on Monday to approximately $270 per share. This marked a nearly 600% increase from its IPO price of $31. The rally pushed Circle’s market capitalization above $77 billion at one point, surpassing Coinbase’s $77.8 billion and the $61 billion market cap of its stablecoin, USDC.
Cointelegraph reported that this sharp increase follows growing investor enthusiasm after Circle’s public debut. Bitwise CEO Hunter Horsley described the IPO as a moment that changed mainstream investor outlook toward digital asset companies. In contrast, Two Prime’s Alexander Blume questioned the valuation, describing it as irrational given Coinbase receives 50% of USDC’s revenue through an existing agreement.
GENIUS Act and USDC Developments Support Growth
Circle’s recent accomplishments have been bolstered by a comeback in the digital asset market. The U.S. Senate recently passed the GENIUS Act, which has been a positive development for market participants. The legislation was a contributing factor in stock price gains for Circle and Coinbase.
Analysts believe investors may be rotating into Coinbase as a proxy investment play, especially given the revenue-sharing relationship between the two firms. Coinbase earns a substantial portion of USDC reserve income under this deal, linking the performance of both companies. Wall Street analysts have raised COIN price targets in response to these developments and the expanded integration of USDC payments in the market.
Stablecoin Legislation Advances in Washington
Discussions around the regulation of stablecoins is also influencing market expectations. Genus and stablecoin legislation are increasingly moving through the Senate. Former President Donald Trump is behind efforts for the House to pass the bill by August.
Regulatory moves appear to create a more stable structural space for companies like Circle, and Coinbase. The evolving legal framework is expected to pattern future stablecoin and crypto payment activity.
