Circle · Wall Street · Coinbase · Decrypt
CRCL Sell-Off 'Looks Overdone' Say Analysts as Circle CEO Addresses Open USD Threat
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Shares in USDC stablecoin issuer Circle (CRCL) fell 18% on Tuesday amid news of a competing stablecoin launch, Open USD, from global partners like Coinbase, Visa, and Mastercard—but analysts at Clear Street think the market move was an overreaction from investors.
Key facts
- In its Wednesday note, Clear Street arrived at a 12-month price target for the firm at $157—a roughly 140% gain from its Wednesday trading price
- Circle shares have bounced back some on Wednesday, gaining 3 to change hands around $64.55
- Shares in USDC stablecoin issuer Circle (CRCL) fell 18% on Tuesday amid news of a competing stablecoin launch, Open USD, from global partners like Coinbase, Visa, and Mastercard—but analysts at Clear
- As it stands, USDC is the second-largest stablecoin and the fifth-largest crypto token overall with a market cap of more than $73 billion
Summary
CRCL shares fell 18% on Tuesday amid news of a major stablecoin launch coming later this year. Analysts at Clear Street though don't think the launch—which has backers like Visa, Mastercard, and Coinbase—warranted the reaction. Shares have bounced back 3% on Friday but are still 75% off their 52-week high. “While OUSD has strong partners similar to other leading stablecoins, without any solid evidence that OUSD can get real traction, the selloff looks overdone,” analysts wrote in a Wednesday note.