Recently, the stock performance of stablecoin issuer Circle has attracted widespread attention in the market. On June 24, the company's stock price reached a high of $298 during intraday trading, pushing its total market capitalization to over $77 billion, significantly surpassing the market capitalization of its issued USDC stablecoin at around $61 billion. Although the stock price fell back by the close, Circle's market capitalization still exceeds the issuance of USDC.

This phenomenon has sparked intense discussions in the cryptocurrency community and financial markets. Investors are beginning to question: Has Circle's valuation become disconnected from its core business USDC? Does this high premium reflect advancements in crypto financial infrastructure, or does it hint at a potential valuation bubble?

On the surface, the rise in Circle's stock price seems to reflect the market's optimistic expectations for its future development. The company is working to transform from a purely stablecoin issuer to a provider of Web3 financial infrastructure. Circle has launched the on-chain clearing protocol CCTP and established partnerships with well-known companies such as Visa and Solana. In addition, services like Circle Mint, compliant custody, and cross-chain settlement are seen by some investors as the prototype of a future "on-chain version of Swift + PayPal."

However, multiple on-chain data analysts and crypto research institutions have raised warnings about the current valuation structure. They pointed out that the disconnect between Circle's market capitalization and its core business USDC may exacerbate the structural vulnerabilities of the financial system. This valuation imbalance has triggered market concerns about potential risks.

Although investors seem to place more value on the on-chain clearing network, corporate payment interfaces, and compliant trading channels that Circle may control in the future, there is still uncertainty about whether these expectations can be fulfilled. Market participants need to carefully assess and find a balance between innovation and risk.

With the rapid development of the cryptocurrency finance industry, valuation issues for companies like Circle may become increasingly scrutinized. Regulators, investors, and industry participants need to work together to ensure the healthy development of the market and prevent potential systemic risks.