Circle Internet Group Inc. (NYSE: CRCL) stock has surged from around $120 to approximately $240 in just two weeks. Analysts are now considering the possibility of the stock hitting $500, which would value the company around $120 billion.
Key factors supporting this valuation include the potential growth of USDC circulation from approximately $60 billion to $250 billion, which could generate $8 billion annually in gross yield revenue, and the establishment of a strong infrastructure revenue stream through enterprise APIs. If Circle secures between 15,000-20,000 clients, it could achieve $3-3.5 billion in recurring revenue.
However, risks like fluctuating interest rates, profit-sharing challenges with partners like Coinbase, slower-than-expected API adoption, and uncertain regulatory landscapes could hinder this trajectory.
