Jun 7, 2025
Ibiam Wayas
Circle, which issues USDC stablecoin, is all over the news after its stock (CRCL) ripped 200% on debut, from the $31 IPO price.
The demand/volatitily for CRCL was so high that NYSE had to halt trading two times minutes after market open. First at $88 and $103.75.
The IPO, which was oversubscribed by the way, was expected to value Circle at $8 billion. Right now, CRCL trades at $107.70 per share, which puts Circle at $21.59 billion market cap.
The performance of Circle stock price and demand clearly show that TradFi wants exposure to stablecoins market and cryptocurrencies.
However, it would seem that Wall Street still underestimates the amount of interest in the crypto, with Coinbase and Circle’s IPO so far.
In both cases, the IPOs were “massively underpriced” according to Caitlin Long, CEO of Custodia Bank.
“Some equity capital markets bankers have some ‘splaining to do—not the first time a crypto-related IPO was massively underpriced. Limited data set, ofc, but WallSt still fundamentally underestimates crypto & this is just another example of that fact,” Long said.
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