CRCL's Accelerating USDC Adoption Drives Top Line: What's Ahead?

Circle Internet Group’s CRCL prospects are riding on the growing adoption of USDC stablecoin. As of Nov. 28, $76.44 billion worth of USDC was in circulation. In the third quarter of 2025, USDC circulation climbed 108% year over year to $73.7 billion, led by deeper institutional usage and broader integration across blockchain networks. This rapid expansion helped Circle boost its stablecoin market share to 29%, while USDC accounted for 40% of all stablecoin transaction volumes, a clear indication of strengthening network effects.

This momentum is further visible in soaring on-chain activity. USDC transaction volumes grew sharply (580% year over year in the third quarter of 2025) as adoption accelerated across payments, trading, capital markets and decentralized finance (DeFi). Circle’s Cross-Chain Transfer Protocol has emerged as a trusted, efficient way to move digital dollars across blockchain networks, helping attract major partners like Visa, Deutsche Börse, Kraken, Finastra and global banks.

Meanwhile, the rapid expansion of the Circle Payments Network (CPN) is opening new corridors for USDC payments. As CPN scales across multiple regions, the ease of using USDC for everyday financial flows is rising, reinforcing adoption and strengthening Circle’s network effects.

This accelerating adoption is translating into steady financial gains. CRCL’s position remains encouraging as institutional demand climbs, regulatory clarity strengthens and CPN expands globally. The Zacks Consensus Estimate for 2026 indicates that revenues will increase 18% year over year to $3.22 billion, highlighting USDC’s growing adoption, becoming a powerful tailwind for CRCL’s long-term trajectory.

CRCL Faces Stiff Competition in the Stablecoin Market

Coinbase Global COIN has emerged as one of CRCL’s closest competitors in the stablecoin domain. Strengthened by rising USDC balances and a clearer regulatory climate, Coinbase leverages deep partnerships and strong financial resources. COIN’s initiative to buy BVNK for $2 billion — the largest stablecoin deal — highlights its push to boost stablecoin payments and intensify competition with CRCL.

Fiserv FISV is emerging as a key challenger to CRCL by launching its own fiat-backed stablecoin, FIUSD. Leveraging its vast banking and payments network, Fiserv integrates tokenization directly into its existing infrastructure, giving it instant scale over CRCL. Backed by projects like North Dakota’s Roughridercoin and broad network partnerships, Fiserv delivers regulated, bank-integrated stablecoin services, reinforcing Fiserv’s competitive edge over CRCL.

CRCL’s Share Price Performance, Valuation & Estimates

In the trailing six-month period, Circle’s stock has returned 1%, lagging behind the broader Zacks Finance sector, which returned 9.9%, but outperforming the Zacks Financial - Miscellaneous Services industry, which declined 0.5%.

CRCL’s 6-Month Price Performance

From a valuation standpoint, CRCL appears overvalued, trading at a forward 12-month price-to-sales ratio of 6.39, higher than the industry's average of 3.26. The company carries a Value Score of D.

CRCL’s Valuation

The Zacks Consensus Estimate for 2025 earnings is pegged at a loss of 87 cents per share, narrower than the loss of $1.94 projected 30 days ago. The consensus estimate for 2026 earnings is currently pegged at 92 cents per share, unchanged over the past 30 days.

Circle currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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