The stablecoin sector is having a moment—and investors are either riding the rocket or reaching for the parachute. Circle Internet Group (CRCL), dubbed the “first stablecoin stock,” has surged nearly 500% since its IPO just three weeks ago. But with short interest climbing and institutional investors tapping the brakes, is this a bubble in the making? Retail Frenzy vs. Institutional Caution A Tale of Two Strategies While retail traders are piling into Circle and Korea’s KakaoPay like it’s 2021 all over again, global and local funds are quietly heading for the exits. KakaoPay, for instance, has doubled in value over the past month, prompting a wave of profit-taking from institutional holders. Déjà Vu, Metaverse Edition SeokKeun Ha, CIO at Eugene Asset Management, likens the current hype to the metaverse stock craze of 2020–2021—a rally driven more by vibes than valuation. “It’s essentially a bet on government policy,” he noted, pointing to U.S. President Donald Trump’s vocal support for stablecoins as a key catalyst. Circle Internet Group Market Cap: From $18B to $48B in 3 Weeks A Meteoric Rise Circle’s market cap has exploded from $18.5 billion at IPO to $48.17 billion as of late June 2025. That makes it one of the top 500 most valuable companies globally, leapfrogging legacy fintech names in record time. What’s Fueling the Fire? Regulatory tailwinds: The U.S. Senate recently advanced a stablecoin bill, giving Circle a clearer runway. Retail momentum: CRCL has become a meme-stock darling, with social media buzz driving daily volume. Trump factor: The administration’s pro-stablecoin stance has added political fuel to the rally. Final Thoughts: Bubble or Breakthrough? Circle’s rise is undeniably impressive—but also eerily familiar. When stocks go vertical on policy hopes and retail hype, gravity tends to catch up. Still, with USDC adoption growing and a regulatory framework taking shape, Circle may have more staying power than your average crypto darling.
