Circle, the cheeky guardian of USDC, saw its stock (NYSE: CRCL) tumble a dizzying 9.89% in a single clattering day, closing at $85.10. The tumble was blamed on a sour taste from an unfavorable analyst review and on whispers of Circle’s sleepy inaction during the Drift Protocol mischief.
Why did Circle’s shares dip by about 10%?
Enter Ed Engel, the silver-tongued sage of Compass Point Investment Bank, who slid Circle from “neutral” to “sell” and trimmed its value to a shy $77, grumbling about thinning margins from Circle’s dazzling stablecoin yield-sharing shenanigans. In this pay-to-play carnival, Circle boasted $2.75B in total revenue for 2025, but handed roughly half – $1.35B – to Coinbase, faster than a gobstopper vanishing in a giggle.
The numbers for USDC’s supply growth weren’t spared from the scolding either: a meagre 73% in 2025, a far cry from the blockbuster 820%+ seen in 2021.
Another teacup-tipper of a reason for the dip is the little scandal dubbed the Circle Files. A sharp-eyed on-chain sleuth, ZachXBT, cried foul, alleging Circle hesitated to freeze the spoils of fraud and theft – including those from the Drift Protocol.
New pretenders like Sky (USDS) have begun nipping at USDC’s heels. The mighty duo of USDC and USDT slipped to 83.6% of the club by late 2025, down from a swaggering 91.6% back in 2024.
Outside the firm’s walls, Circle’s stock has slunk down 26.24% over the past month due to the whirligig of macroeconomic winds and regional-conflict shocks.
Most crucially, the stablecoin-sized CLARITY Act remains in limbo as big players tangle over who should enjoy the yield-bearing glitter.
Revenue diversification and regulatory compliance
In a bid to wring more coins from the money-tree, the firm unveiled the institutional-grade settlement platform, Circle Payments Network, and plonked Amazon’s former CEO, Adam Selipsky, onto its Board of Directors.
Meanwhile, Circle’s flagship product, USDC, remains the brightest star in the sky, with Chainalysis predicting a whopping $1.5 quadrillion in trading volume by 2035. Institutional demand for USDC surged so high on April 7 that Circle minted a billion USDC in a 24h spell.
As for the ZachXBT tale, Circle sang a song of regulatory compliance, insisting it freezes assets only when commanded by law as part of its consumer-protection crusade.
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2026-04-10 05:22