Circle Shares Hit New Highs: Is CRCL the Next Coinbase?
Circle Internet Financial, the company that issues USDC, the second-largest stablecoin, is now worth $66.9 billion on the market. This is more than the $61.3 billion total circulation supply of its dollar-pegged token. Due to the increased investor trust that followed significant stablecoin legislation in the United States, Circle has been able to draw closer to Coinbase, a cryptocurrency exchange with a market capitalization of $78 billion.
Circle (CRCL) closed at $263.45 on Monday after reaching a peak of $298.98 during the session, according to data from Yahoo Finance. Even still, it was an 800% increase since its IPO in early June and almost a 10% improvement for the day. With the top, the company’s market capitalization surpassed the $61.3 billion supply of USDC in circulation and reached just under $67 billion.
GENIUS Act Clears Senate: U.S. Nears Historic Stablecoin Regulation
This landmark comes after the GENIUS Act was passed by the U.S. Senate on June 17 by a resounding 68-30 vote. The measure will be the first government framework for dollar-pegged cryptocurrency assets in the United States once it is passed into law. It will open the door for banks, fintechs, and possibly large merchants to enter the market while requiring complete support, frequent audits, regulatory clearance for issuers, and restrictions on algorithmic stablecoins.
CRCL Skyrockets as Fiserv Teams Up With Circle
Investors responded quickly, as evidenced by the CRCL shares‘ 80% increase in just the last week. The announcement that financial behemoth Fiserv intends to use Circle’s technology to introduce its own price-stable digital asset (FIUSD) by year’s end fueled the excitement yesterday.
The fact that Circle is currently trading at 216 times net income with a P/E ratio exceeding 3,200 has some analysts concerned about a potential bubble, even though its value puts it within striking distance of Coinbase. They imply that rather than focusing on current fundamentals, investors may be placing a greater emphasis on potential future profits.
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