Is Circle's 543% monthly surge just the beginning? The stablecoin investment opportunity is here!

Recently, the U.S. stock market has been dominated by a familiar name—stablecoins. Usually unnoticed, they have now become the darling of capital. On June 18, stablecoin-related stocks collectively surged, with $Circle(CRCL.US) skyrocketing nearly 34% in one go. I believe many friends are now curious: What is the investment value of stablecoins? Is this rally a short-term hype or a long-term opportunity?

Today, I will share my judgment on stablecoins from three aspects: what they are, why they are rising, and future investment opportunities.

What Are Stablecoins?

If you’ve traded cryptocurrencies, you’re probably familiar with them. Simply put, stablecoins are cryptocurrencies pegged to real-world assets (such as the dollar, euro, or gold). Unlike Bitcoin or Ethereum, which can fluctuate dozens of percentage points in a day, stablecoins aim for "price stability."

Key features:

Price stability: Pegged to the dollar/gold, less prone to wild swings.

Global circulation: 24/7 transactions, no time or location restrictions.

Transparency on-chain: Traceable transactions, compliance-friendly.

As of June 2025, the global stablecoin market cap has reached $251.1 billion, with USDT and USDC accounting for $153.3 billion and $61.4 billion, respectively, solidifying their market dominance.

Core Reasons for the Surge

1. Policy Breakthrough

The most direct catalyst for this rally was the U.S. Senate’s passage of the Genius Act on June 18, granting stablecoins "federal-level" recognition. This is a major policy endorsement, and the market reacted swiftly. Circle’s stock surged nearly 34% that day, with a year-to-date gain of 543%, effectively becoming the "sentiment anchor" for this sector.

Meanwhile, Hong Kong announced new stablecoin regulations effective August 1, requiring 100% reserves and licensed operations. More importantly, financial giants like Ant Group, Standard Chartered, and Hong Kong Telecom are applying to enter the market, signaling their confidence in its potential.

2. Financial Giants Entering the Market

I’ve always believed that one of the most important signals in fintech is whether traditional giants are genuinely participating. This time, they’re making moves:

• JPMorgan launched its stablecoin, JPMD, on Base chain, enabling interest settlements;
• Coinbase applied for tokenized stocks, aiming to create a "U.S. stock exchange" on-chain;
• Visa and Mastercard are testing USDC for payments.

This shows traditional financial giants not only recognize stablecoins but are actively building around them.

3. Emerging Market Demand

You might not expect it, but in high-inflation countries like Argentina and Turkey, stablecoins aren’t just "investments"—they’re lifelines:

• Argentina’s CPI exceeds 200%, making USDT the most reliable savings tool;
• Turkish companies pay salaries in USDC to avoid currency depreciation;
• Cross-border payments cost just 0.1% vs. banks’ 2%-5%.

Future Investment Opportunities

As we know, positive developments in an industry ripple through its ecosystem. Stablecoins are no exception. Before diving into investment opportunities, let’s explore their supply chain and business models.

Here’s my analysis of specific opportunities:

1. $Circle(CRCL.US)

CRCL is the star of this rally, soaring from ~$150 to ~$200, a 60% intraday spike. Technically, it’s now overbought (RSI and KDJ at highs). My take: Don’t chase highs. Wait for a pullback to ~$180 for signs of support before considering entry.

2. $Coinbase(COIN.US)

COIN is in a mid-term uptrend but now tests the Bollinger Band upper line (~$295), a resistance zone. MACD just turned positive but lacks momentum. Avoid chasing; if it holds above $260 (or $275), it’s a good dip-buying opportunity.

3. $OSL GROUP(00863.HK)

OSL is Hong Kong’s only licensed crypto platform and a key focus. The stablecoin policy is a long-term tailwind. Weekly charts show a solid uptrend, consolidating near HK$12. Volume is rising subtly, suggesting institutional accumulation. Support at HK$10.5-11.5; hold if unbroken.

4. $ZA ONLINE(06060.HK)

This stock surged from ~HK$10 to HK$22.75, now hovering near HK$20—a critical juncture: Is it consolidating or topping out? Technically, Bollinger Bands are flattening after expansion, with price oscillating between mid and upper bands (still bullish). MACD is high but not bearish; momentum is fading but not collapsing. A breakout above HK$22.75 could signal another leg up; a drop below HK$18.5 (mid-band) would be worrisome.

In summary:

Final thoughts:

As a blogger long focused on U.S./HK stocks and fintech, I’ve come to believe we must look beyond "surface fluctuations" to understand "underlying shifts."

I used to overlook stablecoins. But now, I see policy opening doors, capital flowing in, real demand, and giants advancing.

I won’t say "buy now," but I’ll stress: This sector is worth watching closely.

$LIANLIAN(02598.HK) $T-REX 2X Long Bitcn Dly Trgt ETF(BTCL.US) $JD-SW(09618.HK) $STANCHART(02888.HK) $Standard Chartered PLC(STAN.UK)