Circle stock price continues to recover following its recent financial results and as data points to the robust usage of the USDC stablecoin. CRCL jumped to $105 on Wednesday, its highest swing since November 10 last year. This article explores what to expect as top catalysts build.
Circle Stock to Benefit as USDC Usage Jump
Third-party data shows that USDC’s usage is accelerating, a move that will benefit the company. Artemis data shows that the USDC supply jumped to $78 billion, while the number of active addresses soared to over 14.5 million.
The most important metrics are the number of transactions and volume. USDC had 992 million transactions in the last 30 days as the adjusted volume soared to $5.9 trillion. Most of this volume was happening in centralized exchanges followed by DEX networks and gaming. Its role in the payments industry is soaring.
USDC is benefiting from being the biggest GENIUS Act-compliant stablecoin. This makes it highly popular among American companies and users. The soaring USDC in circulation benefits Circle through the interest it earns by investing in short-term government bonds.
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Circle stock has another major catalyst that is currently in its infancy. The company launched Circle Payments Network (CPN) last year. It is a product tailored to banks and other payments companies seeking a better way to move money. Instead of using the slow and expense Swift system, they can use the service for instant payments for a tiny amount of cost.
In a statement, the company said that the service had enrolled 55 companies and was considering adding 74 more. The annualized transaction volume on CPN has jumped to $5.7 billion. This business could become a major part of Circle’s business in the future.
At the same time, Circle is pitching itself to companies seeking to roll out their stablecoins. Instead of launching their in-house stablecoin, its pitch is that using USDC and EURC are better alternatives.
The most recent results showed that Circle’s revenue jumped by 77% in the fourth quarter to $770 million, while its annual figure jumped by 64% to $2.7 billion. Its net income jumped to $133 million, and analysts expect this growth trajectory to continue in the future as demand for stablecoins jump.
The other potential catalyst for the CRCL stock is the potential passing of the CLARITY Act, which stalled in Congress recently.
CRCL Stock Price Technical Analysis
Circle shares tumbled to a record low of $49 in February as investors waited for its financial results. It has now rebounded and moved to the highest level since November last year.
The stock is now nearing the 23.6 Fibonacci Retracement level at $109. This Fibonacci figure connects its highest and lowest levels on record.
Circle has already jumped above the 50-day Exponential Moving Average (EMA) and the Supertrend indicator.
Therefore, its strong technicals and fundamentals suggest that the CRCL stock price will continue rising in the near term. If this happens, the next key target will be the 38.2% Fibonacci Retracement level at $145. A move above that price will point to more gains to the 50% retracement at $174.
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