Circle Stock Sinks Toward IPO Level as Insider Unlock Sparks Renewed Volatility
Circle (Nasdaq: CRCL) has become one of the latest victims of the market downturn, with the stock experiencing sharp volatility that continues to weigh on its performance.
The company issues USDC, the second-largest stablecoin, which maintains a 1:1 peg with the U.S. dollar and currently holds a market capitalization of $75.25 billion.
As of publication time, the stock has fallen back toward its IPO level, leaving ahead long-term holders under pressure.
On the Nasdaq chart, the asset trades around $85.15, compared to its IPO price of $64—roughly 25% away from fully retracing to its listing value. This trend has not surprised some market commentators.
A well-known X account, Walter Bloomberg, noted in June that the IPO was 25 times oversubscribed, typically signalling an overvaluation at launch.
CRCL later rallied to a peak of $298.98 during the height of bullish sentiment across the crypto market, which similarly saw strong performance.
Factors Affecting CRCL’s Performance
Several factors have been linked to CRCL’s recent underperformance. One is the unstable macroeconomic backdrop, with uncertainty around the timing of potential rate cuts, which could materially affect the company’s yield outlook.
Despite this pressure, . Its recent Q3 earnings reported $9.7 trillion in transaction volume over the past year and a 680% year-over-year increase.
Crypto analysts, Milk Road, however, the latest decline to insider tradeing, arguing that insider activity has become a key driver of the downturn.
“ahead on, insiders were probably locked up and unable to trade, which kept upward pressure on the price. Once those restrictions lifted, insiders cashed out at these inflated valuations.”
He added that the stock may continue to slide, noting that the warning signs have already impacted market sentiment.
“We still think $CRCL looks overvalued and has more room to fall. Those strong earnings were just another ‘trade-the-news’ event for Circle.”
Circle Expands Infrastructure While Updating USDC Policy
Circle has pushed deeper into institutional blockchain infrastructure with the , a layer-1 network designed to connect traditional finance with compliant, high-performance on-chain settlement systems.
The testnet uses USDC as its native gas token and aims to give regulated institutions a streamlined way to interact with blockchain technology without compromising on oversight or operational standards.
The company also revised its . The update clarifies that Circle will only restrict transactions that violate legal or regulatory requirements, rather than imposing broader limitations.
The shift brings the company’s policy more in line with established U.S. rules and reflects an effort to maintain neutrality while still enforcing compliance.
