The passage of the stablecoin bill is good for Circle, and analysts give CRCL a buy rating

After the U.S. Senate passed legislation this week to establish regulatory rules for dollar-pegged cryptocurrencies, Seaport Global gave stablecoin issuer Circle its first "buy" rating, with CRCL rising 20% on Friday, reaching a 248% increase in just two weeks since its listing.

Stablecoin Market Size Projected to Reach 2 Trillion USD, Circle's Target Price 235 USD

Optimistic sentiment around stablecoin regulation has driven strong growth. Seaport analyst Jeff Cantwell believes the global stablecoin market could expand from the current approximately 260 billion USD to 2 trillion USD. In his Friday report to clients, he wrote that this would bring 25%-30% annual revenue growth for Circle.

We believe Circle is a top crypto "disruptor" with enormous future opportunities.

He set CRCL's target price at 235 USD, which was already reached on Friday.

Regulatory Adoption to Drive Stablecoin Payments as Catalyst

Stablecoin regulation is expected to drive further adoption and institutional investment for issuers like Circle. Cantwell anticipates the company's revenue will reach 3.5 billion USD next year, significantly higher than 1.68 billion USD in 2024.

In April this year, Circle announced the launch of the Circle Payments Network (CPN), connecting global financial institutions with low-cost, instant, and transparent cross-border payments centered on regulated products like USDC and EURC. Cantwell believes this will be a potential catalyst, enhancing the company's development momentum and driving growth.

This month, Shopify and Coinbase also announced a new Commerce Payments Protocol using USDC as a transaction medium, symbolizing a new stage of on-chain commercial payments.

Cantwell believes Circle is competing with payment companies like Visa and Mastercard, whose stock prices have been falling since the Senate passed stablecoin legislation.

CRCL Rises 20% on Friday, COIN Rises 3%

Since Circle officially listed on 6/5, its stock price has been rising, closing at 240 USD yesterday, with a total increase of 248% in just two weeks. Coinbase, a long-term partner of Circle that initially held CRCL through stock exchange, has also seen its stock price rise by 28% in the past week.

(Circle Continues to Rise, Ark Becomes the Biggest Winner on the Table, Can You Miss CRCL and Buy Coinbase Instead?)