Circle’s CRCL shares have attracted a strong interest following its recent listing on the New York Stock Exchange. The company, best known for issuing USDC Stablecoin, has seen its stock price rise sharply since its launch.
Yahoo Finance data shows Circle’s stock rose nearly 22% in pre-market trading, exceeding $130 before it retreated slightly to $123, at just over $130. This followed a previous surge during the IPO launch, pushing stocks to $107 at the close of trading on June 6th.
Industry observers have pointed out that Circle’s recent IPO ranks among the most successful Fintech products in recent years. It has also been the largest fintech IPO in the United States since Coinbase debuted in 2021, highlighting the growing institutional appetite for blockchain-related companies to enter the open market.
Why Circle’s CRCL works so well
Market analysts attribute Circle’s strong stock performance to overwhelming demand from institutional investors.
One clear example is SBI Holdings, a Japanese financial conglomerate, which announced its investment in a $50 million circle. This includes $25 million contributions from SBI Holdings and an additional $25 million contributions from its subsidiary SBI Shinsei Bank.
SBI highlighted the strategic nature of investments consistent with partnerships to expand USDC use in Japan.
Meanwhile, players from other major institutions are also supporting the circle’s public listings. In the context, ARK Investment Management, led by Cathie Wood, is reportedly interested in acquiring $150 million in stake in the company.
Analysts view these investments as strategic bets on increasing demand for stubcoins awarded in US dollars. They also pointed out that success shows a broader market perception of the role of stubcoin in driving mainstream crypto adoption.
But not everyone in the crypto community is celebrating it. Defi analyst Ignas has expressed concern that Circle’s success will benefit traditional finance (Tradfi) more than on-chain users who will not receive direct rewards from USDC growth.
He lamented:
“Crypto is amazing as it rewards early adopters from BTC, ETH, ETH and multiple airdrops. Still, the benefits from the success of the circle will be on-chine users bystanding. There is no base yield, stock, or airdrop from USDC.
Nevertheless, he acknowledged that circle progress promotes transactional activity on the chain and increases the valuation of the underlying blockchain.
