USDC stablecoin issuer Circle’s shares went up another 15% on Monday, extending gains to roughly 60% since last week’s fourth-quarter earnings release, as investors poured into stablecoin-linked equities even though the rest of the crypto market hasn’t moved much.
CRCL was trading at $96, marking a 71% gain over the past month, according to Google Finance. Yet shares remain more than 10% below their debut price on the New York Stock Exchange last June.
Crypto market reacts to pandemic events
Reports point towards the growing gains in the CRCL stocks being due to investors looking for a “safe haven” in stablecoin-linked assets during the global geopolitical volatility and the massive Q4 earnings.
The USDC stablecoin supply increased by 72%, according to recent reports, reaching $75.3 billion. The company recorded a 77% increase in revenue to $770 million, despite a net loss tied to IPO compensation in the last quarter.
With both geopolitical tensions and regulatory developments, the digital asset ecosystem is moving toward broader volatility. The airstrikes between the US/Israel and Iran on February 28, 2026, had pushed Bitcoin to dip below $63,000, which later rebounded by March 2, as per CoinGecko, fueled by a “digital gold” narrative as the asset appeared more resilient than US stock futures.
In an interview with the media outlet, Head of Research at Derive, Sean Dawson, said, “The growing demand for stablecoins and optimistic long-term projections have made CRCL and similar projects especially popular this month.”
He also stated that supportive regulatory developments, including the GENIUS Act, with a “clear product-market fit,” have contributed to CRCL being seen as a stable and attractive investment option despite the dip in the digital asset sector.
Regulatory developments add fuel to Circle’s rally
Stablecoin-linked equities have proven relatively resilient. Analysts say that’s because stablecoins are increasingly seen less as speculative crypto instruments and more as foundational plumbing for digital payments.
Last week, the Office of the Comptroller of the Currency released a proposal outlining how it intends to implement the stablecoin-focused GENIUS Act, which Trump signed into law last summer. This could impact stablecoin rewards and yields, as well as how exchanges work with stablecoin incentives. The proposal awaits 60 days for public comment.
