Circle’s Stock Skyrockets Toward Coinbase’s Valuation, But Analysts Flag Overheating Risks
Circle (CRCL) shares continued their explosive rally on Monday as investors pile into stablecoin-focused plays, even as some market watchers caution that the company’s soaring valuation may be running too hot.
The stock surged as much as 22% during morning trading, touching a record near $299, before easing to close around $263—still up 9% for the day. Since debuting at $31 per share earlier this month, Circle has rocketed about 750%.
At its intraday peak, Circle’s market capitalization neared $60 billion, nearly matching the $61.3 billion circulating supply of its flagship USDC stablecoin. That places it within striking distance of crypto giant Coinbase (COIN), which boasts a market cap of roughly $78 billion.
The surge reflects growing investor appetite for stablecoins, a sector with few pure-play options on public markets. USDC remains the second-largest dollar-pegged stablecoin globally and plays a critical role in centralized exchanges, decentralized finance (DeFi) applications, and increasingly in cross-border payments.
Investor optimism has been fueled in part by the recent passage of the GENIUS Act in the U.S. Senate, a bill designed to bring regulatory clarity to the stablecoin market—a development some believe could unlock trillions in potential market expansion.
Yet, despite the hype, analysts warn Circle’s current valuation might be difficult to justify.
“Not a lot of upside in the current model,” said Jon Ma, CEO of crypto analytics firm Artemis, last Thursday. He noted that Circle’s valuation multiples far exceed those of other fintech and crypto companies, trading at around 32 times revenue, 80 times gross profit, 152 times EBITDA, and 285 times earnings.
Circle’s market cap now rivals major fintech names like Robinhood ($68 billion), Nubank ($59 billion), and Block ($38 billion), raising questions about how sustainable its rally may be without a correction.
