---
title: "Circle CEO Jeremy Allaire Says the Stablecoin Market Is Going to See Record Growth. What Does That Mean for CRCL Stock?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/293848890.md"
description: "Circle CEO Jeremy Allaire predicts the stablecoin market will grow from $1 trillion to tens of trillions, potentially boosting Circle's revenue. However, Circle faces significant competitive risks from Open USD (OUSD), backed by a coalition including Coinbase, which offers zero-cost minting and decentralized management. Despite analyst expectations for doubled revenue by 2028, Circle's stock has fallen nearly 70% over the past year due to these competitive headwinds and macro uncertainties, making it a risky investment despite its early mover advantage."
datetime: "2026-07-26T14:59:25.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/293848890.md)
  - [en](https://longbridge.com/en/news/293848890.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/293848890.md)
---

# Circle CEO Jeremy Allaire Says the Stablecoin Market Is Going to See Record Growth. What Does That Mean for CRCL Stock?

**Circle** (CRCL +0.29%) issues **USD Coin** (USDC +0.00%), the world's second-largest stablecoin and the most widely used stablecoin in the United States. USD Coin is backed by Circle's own U.S. dollars and Treasuries, and the company generates most of its revenue from the interest earned on those deposits (known as its reserve income). Circle recently won a U.S. bank charter, and its firm compliance with U.S. regulations makes it an appealing choice for institutional investors.

Circle's revenue will keep rising as long as it continues to mint more USDC tokens for investors who want a faster, more digitally flexible alternative to real U.S. dollars. In a recent CNBC interview, Circle CEO Jeremy Allaire claimed the entire stablecoin market could grow from about $1 trillion today to tens of trillions of dollars over the coming years. But does that mean Circle's stock will grow at the same rate as the broader stablecoin market?

![An investor checks a stock chart on a laptop.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84ODAxMTQvZ2V0dHlpbWFnZXMtMTQ3NzEzNzE3Ny5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Image source: Getty Images.

## Circle faces a major existential challenge

Circle's U.S. bank charter and its tight compliance with U.S. regulators might make it seem like an obvious way to profit from the stablecoin market's growth. However, Circle's entire future is pegged to USDC -- and that leading token will face a major new competitor later this year.

That challenger is Open USD (OUSD), a new stablecoin backed by a coalition of over 140 financial, tech, and retail giants. One of OUSD's most prominent backers is Coinbase (COIN \-1.74%), a founding partner of USDC. Coinbase retains USDC's reserve income on its own exchange, and that crucial partnership will automatically renew on Aug. 18.

Unlike USDC, which is only managed by Circle, OUSD is managed by that independent coalition. OUSD's zero-cost minting and redemptions could also undermine Circle's fee structures and reduce the operational friction in using stablecoins. Those decentralized, democratized improvements could quickly make OUSD more popular than USDC.

Expand

![Circle Internet Group Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0NSQ0wucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

## NYSE: CRCL

Circle Internet Group

Today's Change

(0.29%) $0.18

Current Price

$62.36

### Key Data Points

Market Cap

$16BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$59.96 - $63.18

52wk Range

$49.90 - $197.90

Volume

8.4M

Avg Vol

15.1M

Gross Margin

4.98%

## Why Circle's stock is a risky bet right now

From 2025 to 2028, analysts expect Circle's revenue to nearly double from $2.75 billion to $5.25 billion. They also expect its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to more than double from $582 million to $1.31 billion.

With an enterprise value of $13.23 billion, Circle might seem attractively valued at 21 times this year's adjusted EBITDA. However, its stock has declined nearly 70% over the past 12 months amid investor concerns about unpredictable macro conditions and competitive headwinds.

So while the stablecoin market could grow rapidly over the next few years as more businesses, governments, and investors adopt it, it doesn't necessarily mean that Circle -- which established an early mover's advantage in this market -- will be a guaranteed winner in that expanding market.

### Related Stocks

- [CRCL.US](https://longbridge.com/en/quote/CRCL.US.md)
- [CRCG.US](https://longbridge.com/en/quote/CRCG.US.md)
- [CRCD.US](https://longbridge.com/en/quote/CRCD.US.md)
- [CRCA.US](https://longbridge.com/en/quote/CRCA.US.md)
- [CCUP.US](https://longbridge.com/en/quote/CCUP.US.md)
- [CRCO.US](https://longbridge.com/en/quote/CRCO.US.md)
- [COIN.US](https://longbridge.com/en/quote/COIN.US.md)

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- [BUZZ-Circle's IBM patent deal meaningful, Susquehanna says](https://longbridge.com/en/news/294086053.md)
- [Public Employees Retirement System of Ohio Acquires 41,764 Shares of Circle Internet Group, Inc. $CRCL](https://longbridge.com/en/news/294330564.md)
- [Circle buys IBM blockchain patent portfolio assets](https://longbridge.com/en/news/293928224.md)
- [Circle Acquires 1,000 IBM Blockchain Patents](https://longbridge.com/en/news/293958725.md)
- [Circle Acquires IBM's Entire Blockchain Patent Portfolio: 'IBM Just Capitulated,' Analyst Says](https://longbridge.com/en/news/294069233.md)