On February 26, the stablecoin issuer Circle Internet Group (NASDAQ: CRCL) stock surged 35.5%, closing at $83.14, after the company announced its Q4 earnings that significantly exceeded market expectations. Following volatility in the crypto concept stocks, this strong rebound has once again made Circle a focus in the digital asset sector.
The financial report shows that USDC circulation increased by 72% year-over-year, directly driving reserve income and overall revenue higher. Quarterly total revenue reached $770 million, up 77% year-over-year, with $733 million coming from reserve asset earnings. Net profit from ongoing operations was $133 million, with an adjusted EBITDA of $167 million, indicating that the stablecoin reserve income model remains profitable under the current interest rate environment. Jeff Cantwell, an analyst at Seaport Research Partners, pointed out that the continued expansion of USDC indicates strong market demand for dollar-pegged digital assets. CEO Jeremy Allaire stated that if a rate cut cycle occurs in the future, it would help improve currency circulation efficiency and increase stablecoin adoption.
On the market side, analysts believe that the recent rise is driven not only by improved performance but also by technical breakthroughs. Some institutions note that the outlook for digital commerce and AI-driven payment applications has improved, boosting investor sentiment. William Blair’s Andrew Jeffrey advised investors to focus on Circle’s long-term growth logic, while Mizuho Bank analyst Dan Dolev emphasized that the role of stablecoins in the digital payment system continues to strengthen.
In terms of business expansion, Circle is accelerating its platform ecosystem development, including advancing the Arc blockchain test network and Circle Payment Network, expanding cooperation with Visa to integrate USDC into settlement systems, and collaborating with Polymarket to promote on-chain payment scenarios. These initiatives help diversify reliance on single reserve interest income.
However, risks remain. If interest rate declines accelerate unexpectedly, reserve yields could narrow; regulatory policy changes or redemption pressures on stablecoins could also impact profitability. As more stablecoin issuers enter the market, the competitive environment is becoming more intense. Going forward, investors will pay attention to the policy signals from the Federal Reserve’s March meeting and the potential impact of macroeconomic data on stablecoin yield structures.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Circle releases a cross-chain infrastructure roadmap, with CCTP cumulative transfers exceeding $110 billion
Circle has released a cross-chain interoperability infrastructure roadmap. Since CCTP launched in April 2023, it has processed over $110B in USDC transfers and supports 20 blockchains. In the future, it plans to expand to other assets and launch multiple innovative products to simplify cross-chain workflows.
GateNews8h ago
Compass Point downgrades Circle’s rating to “Sell,” and cuts its price target to $77
Compass Point analyst downgraded Circle’s rating from “Neutral” to “Sell,” and cut the target price to $77. The reason is that USDC growth is mainly coming from low-profit platforms, which is affecting the company’s earnings. The analyst expects first-quarter performance to miss expectations, with EBITDA falling 19% quarter-over-quarter. Despite this, if the crypto market rebounds, Circle’s outlook could still improve.
GateNews16h ago
Circle minted a total of 10.5 billion USDC on Solana over the past month
Gate News update, on April 10, Circle added another 250 million newly minted USDC today. Data shows that over the past month, Circle has cumulatively minted 10.5 billion USDC on Solana.
GateNews17h ago
Circle Responds to the Drift Protocol Hack: USDC Freezing Must Be Executed Legally, Urges Faster Crypto Legislation
Circle’s Chief Strategy Officer Dante Disparte responded to the Drift Protocol theft incident, emphasizing that freezing USDC is being carried out according to law, calling for stronger coordination between law and technology, and suggesting that DeFi protocols should draw on protection mechanisms from traditional markets to advance legal protection of property rights and financial privacy.
GateNews20h ago
Caixin: Polymarket’s use of USDC settlement creates legal risk for participants within China
The article discusses legal disputes involving Polymarket prediction markets, especially the unclear boundary between insider trading and gambling. It emphasizes that using USDC for settlement exposes Chinese participants to legal risk, and it mentions the “End Prediction Market Corruption Act” proposed by a U.S. senator, which prohibits certain government officials and their family members from participating in prediction market trading.
GateNews20h ago
Crypto Card Spending Hits $600M Monthly as USDC Gains on USDT - Coinspeaker
Crypto-linked card spending reached $600 million in monthly volume in March 2026, more than tripling from $187 million recorded a year prior – a 211% annual increase that signals structural rather than cyclical adoption across point-of-sale payment infrastructure.
Cumulative card volume across the
Coinspeaker04-10 07:46
