Circle Shares Surge 750% Post-IPO, Valuation Nears $60 Billion

Circle, the issuer of the USDC stablecoin, has seen its shares surge to a new record high, extending its post-IPO rally to an impressive 750%. The company's market capitalization has reached approximately $60 billion, nearly matching the $61.3 billion supply of its USDC stablecoin. This valuation places Circle in close proximity to the market capitalization of crypto exchange giant Coinbase, which stands at about $78 billion.

Circle's recent surge in stock price reflects the growing investor interest in the stablecoin market, a sector with limited publicly-traded options. USDC, Circle's flagship token, is the second-largest dollar-pegged stablecoin in circulation and is widely used across various exchanges, decentralized finance (DeFi) protocols, and for payments and cross-border transactions. The passage of the GENIUS Act by the U.S. Senate last week, which advances regulation for the asset class, has further fueled investor enthusiasm. Some analysts predict that the stablecoin market could reach trillions of dollars in the coming years.

Despite the strong investor appetite, some analysts have expressed concerns about the lofty valuation multiples that Circle is currently trading at. The company's valuation metrics, such as 32x its revenue, 80x its gross profit, 152x EBITDA, and 285x earnings, are significantly higher than those of its fintech and crypto peers. This has led some to question whether the rally is running ahead of fundamentals. Circle's market capitalization now places it among well-established fintech giants like Robinhood, Nubank, and Block, raising eyebrows about its valuation.