Circle stock continued its strong downward trend today after a group of technology and financial heavyweights teamed up to launch a stablecoin that will challenge USDC. CRCL dumped to $64.9, its lowest level since February 24, and 53% from its highest point in 2026.
Circle Stock After New Stablecoin Launch
The stablecoin industry is getting highly competitive, a move that may disrupt Circle’s growth. PayPal has already launched PYUSD, while SoFi has launched SoFiUSD. Western Union launched USDPT on Solana’s blockchain.
Now, a consortium of some of the world’s largest companies has launched Open Standard, whose stablecoin will be Open USD. This venture comprises companies such as Mastercard, Coinbase, Visa, and Google. In a statement, Zach Abrams, its founding CEO, said:
“Existing stablecoins have great strengths, but to use them at scale, businesses need something that’s open, low-cost, high-throughput, broadly accessible, and aligned to their interests.”
This announcement is notable because it includes Coinbase, which has a long relationship with Circle. Coinbase retains all yield income generated by its USDC holdings. It is also important because it includes some of the biggest players in the financial services industry, raising concerns about whether it will take market share from USDC.
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Still, there are signs that investors are overreacting by dumping Circle’s shares. For one, data shows that newly launched stablecoins have not yet gained substantial market share.
PayPal’s PYUSD has a market cap of $2.6 billion, over three years since its launch. Ripple’s RLUSD has gained a market cap of over $1.6 billion in almost two years. Circle’s USDC and Tether’s USDT have maintained their market share. As such, it is unclear whether the new product will be enough to take market share from USDC.
Still, there are signs that USDC’s growth has slowed drastically in the past few days. Data shows that its market capitalization has dropped to $73.5 billion from a record high of $80 billion. With US bond yields falling, there is a possibility that its revenue growth will slow soon. This is the main challenge that Circle is facing today.
CRCL Stock Prediction: Technical Analysis
The daily chart provides a clear reason for the plummet in CRCL stock price. It formed a double-top pattern at $135 and has now dropped below its neckline at $84.37, its lowest level in April this year. The stock has remained below all moving averages, while the Average Directional Index (ADX) has continued rising.
Therefore, the path of least resistance for the stock is downward, with the next target to watch at $50, its lowest level this year. Crashing below that level will point to further downside, potentially to $40.
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