Circle Soars 168.48% on First Trading Day After IPO, Fuels Crypto IPO Boom
2025 is barely halfway through, and capital markets are already ablaze with crypto excitement. On June 2, stablecoin giant Circle successfully went public on the New York Stock Exchange, with its stock price soaring 168.48% on the first day. The stock closed at $83.23, with a total trading volume of $3.941 billion. This explosive debut didn’t just crown Circle with glory — it catapulted the “crypto IPO” concept to center stage, triggering a surge across crypto-related stocks in both the Hong Kong and U.S. markets, while also drawing a wave of investor interest to an industry that had, until recently, seemed distant and mysterious.
Three Key Factors Behind Circle’s Red-Hot IPO
- Stablecoins Are Going Mainstream — Circle Rides the Regulatory Tailwind
Circle isn’t a new name. It’s the issuer of the USDC stablecoin, the second-largest U.S. dollar stablecoin in the world, just behind Tether (USDT). Put simply, stablecoins are digital currencies pegged to fiat (usually USD), combining price stability with the convenience and tech advantages of crypto. USDC’s biggest advantage lies in its 100% backing by cash and short-term U.S. Treasuries — making it transparent and safe.
This compliant design aligns perfectly with two major U.S. regulatory breakthroughs:
GENIUS Act: Cracks down on algorithmic stablecoins while establishing a regulatory framework for asset-backed ones.
Payment Stablecoin Act: Requires issuers to hold banking or money transmitter licenses, with reserves strictly in cash and Treasuries.
These two bills might as well have been tailor-made for Circle. Its reserve model already fits perfectly, so while competitors scramble to adapt their businesses, Circle is already in compliance — and in position to seize the market. In the U.S. stock market, this is the equivalent of earning a “crypto legitimacy + first-mover advantage” bonus.
And it’s not just the U.S. easing regulations. In May 2025, Hong Kong passed its own Stablecoin Regulation Bill, expected to take effect later this year. With regulatory clarity from both of the world’s most important financial hubs, it’s no wonder investors are rushing to buy Circle stock.
- Market Sentiment Turns Bullish — Bitcoin Breaks $110,000
Beyond Circle’s own fundamentals, the macro environment is just as crucial. The crypto market is undergoing a long-awaited revival.
Remember the “crypto winter” at the start of 2025? Bitcoin plunged below $75,000, and many crypto stocks were cut in half. But just two months later, market sentiment has completely flipped. Bitcoin not only reclaimed the $100,000 mark — it even surged past $110,000. Many investors are exclaiming: “The bull market is back.”
Where’s this bull run coming from? Ultimately, it’s a combination of capital and policy forces:
Liquidity Boost: Institutions like iShares and Fidelity launched Bitcoin ETFs, triggering a flood of retail and institutional inflows.
Policy Shift: The Trump administration is openly pro-crypto. Trump Media bought Bitcoin, filed for a Bitcoin ETF, and even Donald Trump Jr. holds mining company shares.
This fusion of political and financial backing has put Bitcoin and the broader crypto market in the spotlight. Coinbase joined the S&P 500, MicroStrategy kept adding Bitcoin to its reserves, and even GameStop transformed into a “Bitcoin treasury.” It’s starting to feel like the peak of the 2021 DeFi bull cycle all over again.
- Circle’s Fundamentals Are Strong — Healthy Revenue Model
Some may ask, “Can a crypto company really be that legit?” But Circle’s prospectus tells a different story — it’s not here to cash out quick. According to its latest S-1 filing, Circle’s 2024 revenue comes from three main sources:
USDC Reserve Interest (86%): $32 billion in reserves are invested in Treasury repo agreements with a 4.5% annual yield — a steady, safe, and robust cash flow.
Trading & Custody Fees (9%): B2B crypto exchange and custody services, akin to broker commissions.
Developer Gas Fee Sharing (5%): Linked to on-chain activity — high growth potential.
Even more impressive, Circle’s institutional clients grew 82% year-over-year. Partners include giants like Visa and BlackRock — proof that it’s not just loved by crypto circles but also by Wall Street.
And its use of IPO proceeds is refreshingly grounded:
35% for license applications, 30% for reserve expansion, 20% for cross-chain protocol development, and the rest for M&A. This company has strategy, structure, and revenue — it’s a far cry from the “metaverse hype” IPOs that had zero profit and all promise. In this market, Circle is a perfect storm: solid performance, regulatory clarity, strong concept, and legitimacy. Where else would the money go?
The Crypto IPO Boom in Hong Kong and U.S. Markets
Circle is just the beginning. Following its blockbuster debut, crypto IPO fever is sweeping through both Hong Kong and U.S. equity markets.
In Hong Kong:
OSL Group has spun off from BC Technology and filed for listing on HKEX.
Hashkey Exchange is reportedly preparing a secret listing for Q4.
Certik, Amber Group, and others are in preparation stages.
In the U.S.:
Gemini has confidentially filed for an IPO and is working with Goldman Sachs and Citigroup.
Kraken has submitted its F-1, targeting a 2026 listing.
Chainalysis has filed an S-1.
Core Scientific completed bankruptcy restructuring and is returning to public markets.
Fireblocks, Crypto.com, Galaxy Digital are also exploring or advancing IPO plans.
More and more crypto firms are transitioning from “fringe startups” to “compliant public enterprises.” This shift reflects both loosening regulations and a maturing market entering its next evolutionary phase.
Conclusion: Circle Is a Bellwether, Not the Endgame
Circle’s IPO is a landmark for the industry and a major signal that the capital markets are shifting their stance on crypto. Its success is no coincidence — it’s the product of regulatory alignment, bullish markets, and strong fundamentals coming together.
But like every market frenzy, investors should remain clear-headed: stay strategic, diversify risk, and don’t assume every crypto firm can become the next Circle. Not every bubble yields an Amazon.
One thing is certain though: crypto is no longer an underground game — it’s stepping into the mainstream of global finance.
