Circle (CRCL) Stock Soars: The Crypto Powerhouse Turning Wall Street Heads in 2025

Wall Street’s latest obsession isn’t a meme stock—it’s a crypto heavyweight punching above its weight.

Why CRCL is the dark horse of digital finance

Forget the hype trains—Circle’s steady ascent has institutional investors swapping their pinstripes for moon suits. The company behind USDC isn’t just riding the stablecoin wave; it’s rewriting the rulebook for crypto’s collision with traditional finance.

The institutional floodgates are open

While retail traders chase shitcoin pumps, smart money’s piling into CRCL. Trading volumes suggest hedge funds are treating Circle like the new Goldman Sachs—if Goldman Sachs actually understood blockchain.

A cynical footnote for finance purists

Of course, Wall Street only loves innovation after it’s been vacuum-sealed in regulatory compliance and quarterly reports. Circle’s real achievement? Making crypto boring enough for suits to care.

TLDR

• Circle stock has surged over 600% since its June 5 IPO, making it one of the most successful public debuts in recent history for a billion-dollar company
• The stablecoin issuer experienced a brief 15% pullback this week before resuming its rally with a 7% gain on Thursday
• Coinbase benefits directly from Circle’s success, receiving 50% of revenue from USDC interest and earning 100% interest on USDC held on its platform
• Coinbase is on track for a 52% monthly gain, its best performance since November and first three-month rally since late 2023
• Federal Reserve rate decisions and pending stablecoin legislation could impact both companies’ future earnings and regulatory environment

Circle Internet Group’s stock resumed its remarkable rally Thursday after a three-day pullback that saw shares drop 15%. The stablecoin issuer closed up 7% as investors returned to the crypto darling that has become Wall Street’s biggest IPO success story of 2025.

Since going public on June 5, Circle shares have rocketed more than 600% from their offering price. The company raised over $1 billion in its IPO and now carries a market valuation of $50 billion.

“If you take into account Circle’s size, the first-month performance is unprecedented,” says Matt Kennedy, senior strategist at Renaissance Capital. “Billion-dollar IPOs do not historically behave like this in the first month of trading.”

The recent pullback appears to have been temporary profit-taking after the stock’s meteoric rise. Circle surged nearly 170% on its first trading day alone, setting the stage for continued volatility as investors grapple with the company’s rapid valuation expansion.

Circle’s Business Model Drives Revenue

Circle issues USDC, one of the world’s largest stablecoins tied to the U.S. dollar. The company earns interest income on reserves backing USDC, which are held primarily in cash at banks and short-term U.S. Treasury securities.

This revenue model makes Circle sensitive to Federal Reserve interest rate decisions. Chair Jerome Powell faced congressional testimony this week as pressure mounts for rate cuts that could dampen Circle’s earnings.

Coinbase Connection Boosts Both Stocks

While Circle pulled back earlier this week, Coinbase gained 15% over the same period as investors rotated between the related crypto plays. Coinbase closed Thursday up more than 5%, extending gains that have pushed the stock toward a 52% monthly increase.

The connection between the companies runs deep. Coinbase serves as the main distribution platform for USDC and receives half the revenue generated from interest earned on Circle’s USDC reserves.

Coinbase also earns 100% of interest on any USDC held directly on its platform. This dual revenue stream has made Coinbase a beneficiary of Circle’s post-IPO success.

Wall Street analysts have taken notice, with Bernstein and Oppenheimer issuing price target increases for Coinbase this week. The stock is on pace for its best month since November and first three-month rally since late 2023.

The relationship highlights how Circle’s growth directly benefits Coinbase’s business model. As awareness of Circle’s story spreads, investors are recognizing Coinbase’s exposure to the stablecoin opportunity.

Both companies face regulatory uncertainty as Congress considers stablecoin legislation. The GENIUS Act passed the Senate last week and heads to the House of Representatives, which has its own STABLE Act in development.

Circle’s IPO success has sparked expectations for more unicorn companies to go public. The crypto space has produced several billion-dollar private companies that may follow Circle’s path to public markets.

Investment firm Athena Capital’s Isabelle Freidheim notes sufficient demand exists for IPO activity. “There was always the expectation that IPOs WOULD recover later this year or early 2026,” she says.

CoreWeave, another recent IPO success, has quadrupled from its offering price despite a tepid debut in March. The AI company’s performance adds to the momentum building around high-growth tech IPOs.

Circle’s stock closed Thursday at $213.63, representing a gain of $15.01 or 7.56% for the session.