- Circle stock price has soared by 248% from its lowest level this year.
- The USDC market capitalization has jumped to over $81 billion this year.
- Similarly, the USYC has become the biggest money market fund in the world.
Circle stock price has become one of the best performers on Wall Street as it has more than doubled from its lowest point in February to the current $120. This surge could continue as the USYC growth and the USDC market capitalization growth accelerate.
USYC and USDC Growth is Accelerating
The CRCL stock price has jumped in the past few weeks, and this rally may accelerate in the near term, supported by its fundamentals and technicals.
Fundamentally, data shows that Circle is becoming a major player in the financial services industry, with the USYC money market fund adding over $800 million in assets. It now holds over $2.26 billion in assets, up from $203 million in August last year.
Data compiled by DeFi Llama shows that this product has made $243,540 on the fees this month. It made $406k last month and $415,000 in January.
Meanwhile, the USDC stablecoin growth continues rising, a sign that demand is rising. It now has over $81 billion in assets after Circle minted tokens worth over $8 billion this month. With the year bond yielding 3.75%, it means that it will make over $3 billion this year, with a substantial portion of it going to Coinbase.
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Analysts are optimistic that Circle’s business will continue thriving in the coming quarters as the USDC growth continues and interest rates remain at an elevated level. Analysts expect the upcoming results to show that the company’s revenue will jump to $3.13 billion. It will then make over $4.35 billion next year, with its earnings-per-share (EPS) rising to $1.68 from this year’s 91 cents.
Most analysts are highly bullish on the CRCL stock, pointing to its large market share, especially in the United States, where USDT has lost share because it does not comply with the GENIUS Act. Needham analysts expect the stock to rise to $130, while Canaccord Genuity sees it rising to $160.
Still, a key challenge for the CRCL stock price is that it has become a highly overvalued stock, with the current USDC market capitalization being 2.8x of its valuation.
CRCL Stock Price Prediction
The daily timeframe chart shows that the CRCL share price jumped from $48 in February to $115 today. It has jumped above the Major S/R pivot point of the Murrey Math Lines tool.
The stock has jumped above the 23.6% Fibonacci Retracement level, which is drawn by connecting the all-time high and lows. It has moved above the 50-day Exponential Moving Average (EMA). The Average Directional Index (ADX) has jumped to 44, a sign that the bullish momentum will continue.
Therefore, the Circle share price may continue rising in the coming weeks, with the next key target to watch being at $174, the 50% Fibonacci Retracement level. This target also coincides with the extreme overshoot level of the Murrey Math Lines.
However, there is a likelihood that the stock may reverse before continuing the uptrend. This retreat will happen as investors book profits after it jumped by over 140% from its lowest level this year.
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