Key Insights:
- Circle stock price took off, achieving a 35% daily upside fueled by healthy Q4 figures.
- Circle’s share of stablecoin volume transactions was up 50% in Q4.
- Circle’s CEO reiterates AI as a key trend driving USDC adoption.
Circle stock price is currently having its most bullish week since July last year. One would have expected the stock price to have been bullish over the last few months as traders sought safety in stablecoins, but that was not the case.
Instead, the Circle stock price also took a massive hit over the last few months as the crypto market entered a bearish phase. This was because crypto winters are often characterized by lower market activity.
If that was not enough, traders have been treating Circle stock and other crypto stocks the same way they treat the crypto market. The Circle stock price experienced a sizable pullback over the last few months.
The stock peaked above $298 in June last year, and it bottomed out just below $50 earlier this month. An 80% crash from its historic top, but it has since recovered substantially.
Circle stock traded at $86.4 at press time, representing a 70% recovery from its latest lows. However, most of the recovery occurred this week, during which it rallied by over 37%.
Circle Stock Responds to Favorable Q4 Performance Figures
Circle stock price rally coincided with the company’s latest quarterly report, which revealed that it outperformed analyst estimates. The company’s quarterly revenue was up 77% YoY, while USDC circulation grew 72% YoY to $75.3 billion by the end of the quarter.
Circle’s Q4 on-chain transaction volume jumped to $11.9 trillion, up about 3.5X YoY. Quarterly reserve volume for the stablecoin pushed to $770 million, which was a 77% YoY gain.
It was also worth noting that Circle secured a larger share of stablecoin transaction volumes, which surged to nearly 50% during Q4. In other words, USDC usage was gaining momentum at a time when stablecoins were going mainstream.
This suggests that Circle stock could be on track to benefit from the upcoming mass adoption of crypto and stablecoins. This is largely thanks to the changing regulatory landscape, which is expected to enter high gear when the CLARITY Act is passed.
Circle Stock May Be in a Position to Leverage Growth from AI
The AI segment remains one of the key narratives in the tech industry, which explains its strong performance. Circle wants a piece of that pie, as revealed by its CEO, Jeremy Allaire, while he was delivering the quarterly earnings report.
The CEO noted that Circle plans to tap into more growth through AI. More specifically, he noted that the company acknowledges the potential of agentic AI, which some analysts believe could be the next big thing in crypto.
Mr. Allaire provided an update on its native layer-1 blockchain, which was still in testnet. The chain had already attracted more than 100 participants and was on track to launch its mainnet.
The Circle CEO also noted that the company’s CCPT (Cross-chain transfer protocol) was on track to roll out its mainnet. It also accounted for most of USDC’s cross-chain flows. Circle payment solutions onboarded 55 financial institutions spread across 14 markets.
Circle has demonstrated resilience through better-than-anticipated quarterly performance. Especially considering that it occurred while the market was in a major bearish trend.
The company has confirmed that it is also pushing towards maintaining its growth trajectory. The developments suggest the Circle stock price could be on the path towards $100 and more potential long-term recovery.