USDC Issuer Circle’s Stock Plunges 15% as Valuation Concerns Mount

Shares of Circle Internet Group (NYSE: CRCL), the company behind USDC, dropped sharply by 15.49% on Tuesday, closing at $222.65 with further declines to $218.12 in after-hours trading. This pullback comes after an 800% surge since its IPO earlier this month, when shares rocketed from their $31 offering price to a peak of $298.99 on Monday. At its height, Circle's market cap exceeded $71 billion before settling around $54 billion.

Analysts point to overstretched valuations and new competitive pressures as key factors. Compass Point's Ed Engel downgraded Circle to Neutral with a $205 target, warning that the recently passed GENIUS stablecoin legislation could erode market share. "The competitive landscape is intensifying," Engel noted. Financial metrics show Circle trading at 37x trailing revenue and 401x trailing net income—multiples that dwarf competitors like NuBank, Robinhood, and Coinbase.