Circle Stock Soars on NYSE Debut, but Memories of Coinbase’s 2021 IPO Loom Large
Circle (CRCL) made a dramatic entrance on the New York Stock Exchange on Thursday, with its shares surging from the IPO price of $31 to close at $83 — a gain of over 160%. At one point during the trading session, the stock peaked at $104 after opening trades printed at $69.
While the debut drew comparisons to past landmark listings in the crypto space, some analysts are urging caution. The market is still scarred by Coinbase’s high-profile 2021 IPO, which initially soared before plummeting. Coinbase opened at $381, briefly hit $430, and then tumbled below $200 within weeks — a cautionary tale for overzealous investors.
Circle’s listing arrives amid a slight resurgence in stablecoin activity. USDC, the dollar-pegged stablecoin issued by Circle, saw a 22% uptick in trading volume over the past 24 hours. Meanwhile, Tether’s USDT posted a 13% increase, hinting at renewed interest in stablecoin liquidity.
USDC plays a central role in crypto markets, serving as a trusted medium of exchange for trading, lending, and cross-border transactions. Investors may be betting that Circle’s infrastructure will gain further relevance as traditional finance and blockchain continue to integrate.
However, speculative euphoria has often proven short-lived in the crypto sector. With the initial excitement behind it, Circle now faces the real test: sustaining investor confidence in a market that’s anything but predictable.
