Key Insights:
- Circle Internet Group announced a plan to launch a native token on the Arc Network.
- CRCL stock falls 3% despite reporting a 66% increase in revenue and a 202% rise in net income in Q3 results.
- Selling pressure in the crypto market wavers stock performance.
Circle Internet Group on Wednesday said it plans to launch a native token on the Arc Network.
The company reported 66% in revenue growth as USDC stablecoin circulation grew significantly in the third quarter.
CRCL stock dropped 3% in pre-market trading hours, after a 5.57% drop on the previous day. The stock remains under pressure amid weakness in the broader crypto market.
Circle Internet Exploring Native Token Launch on Arc Network
Stablecoin firm Circle is exploring the possibility of launching a native token on the Arc Network, according to an official announcement on November 12.
The company claimed it would help boost network participation to drive adoption. It aligns the interests of Arc stakeholders and supports the long-term growth and success of the Arc network.
Last month, Circle announced the launch of its Layer-1 blockchain Arc public testnet. The blockchain is designed to meet the needs of developers and companies eyeing bringing financial products on-chain.
Circle Reports Higher Revenue and Net Income in Q3
Circle Internet Group announced its Q3 earnings report today. It mentions that USDC stablecoin circulation was $73.7 billion at quarter end, up 108% year-over-year.
In addition, the company reported a total revenue and reserve income of $740 million. The total revenue has jumped by 66%.
Meanwhile, the net income also came in 202% YoY higher at $214 million. Also, the adjusted EBITDA grew 78% to $166 million.
At the time of writing, Circle stock price fell 3.76% to $94.60 in the premarket trading hours on Wednesday. The stock closed 5.57% lower at $98.30 on Tuesday.
The 24-hour high and low were recorded at $102.49 and $97.95, respectively. The average trading volume was below the average trading volume of 10.87 million.
As per Yahoo Finance, the stock has dropped 26% in a month. The year-to-date (YTD) returns have reduced to 42%.
Bitcoin and Crypto Market Remain Under Pressure
BTC price was down 0.30% in the past 24 hours, currently trading at $105,092. The 24-hour low and high were $102,457 and $105,191, respectively.
Trading volume has dropped further by 5% over the last 24 hours, indicating a decline in interest among traders.
Top altcoins including ETH, XRP, BNB, SOL, ADA, and DOGE were also under selling pressure.
The profit booking occurred following the latest ADP jobs data, which revealed that private employers in the US cut an average of 11,250 jobs per week in October.
This signals further weakening of the labor market as traders eye Fed rate cuts in December.
“Without a clear and durable macro catalyst, Bitcoin and the broader crypto market are likely to remain range-bound, even as long-term structural tailwinds continue to strengthen,” per 10x Research.
Volumes have dried in spot and derivatives markets, increasing demand for stablecoins such as USDC and USDT. At the time of writing Circle’s USDC market cap was $76.07 billion.