Circle stock price may crash soon: here’s why
Circle stock price continued its strong surge on Monday, boosting its market capitalization to over $27 billion.
CRCL jumped to $138.27, a significant increase from its offer price of $31. The rally was driven by investor appetite for exposure to the growing stablecoin industry, which Citi expects it to be worth over $1.6 trillion by 2030.
Circle’s performance makes it the best-performing IPO of the year. However, there are two key reasons why the stock may be due for a reversal.
Valuation concerns remain
Circle’s stock price may face downside pressure due to valuation concerns. Its current market capitalization of $27 billion represents roughly 45% of its total USD Coin (USDC) assets, which is relatively…
