Circle Internet stock analysis as USDC monthly volume nears $6 trillion

Circle Internet stock price continued its bull run this week, soaring to the highest level since November 3rd last year.

It has jumped by 120% from its lowest point this year, and its strong fundamentals suggest that it has more upside going forward.

USDC transaction volume is beating USDT

While USDT is the biggest stablecoin in the world by far, data shows USDC is firing on all in some metrics.

For example, data compiled by Artemis shows that it handled over 1 billion transactions in the last 30 days, while USDT had 713 million.

Similarly, that network had a volume of $5.9 trillion in this period, also higher than USDT’s $1.1 trillion. 

This divergence is happening even as the total supply of USDT in circulation has jumped to over $183 billion compared to USDC’s $80 billion.

Also, USDT has over 32.4 million addresses compared to USDC’s 14.4 million.

Most of USDC’s transaction volume is happening on Base, the layer-2 network owned by Coinbase, followed by Ethereum, Solana, Optimism, Monad, and Polygon.

The surge in volume is likely because USDC is the biggest stablecoin in the United States, where it is compliant with the GENIUS Act.

USDT is not compliant with the act as its assets are backed by a portfolio of assets, including short-term government bonds, gold, and Bitcoin.

Circle Payment Network as a catalyst 

Another top catalyst for the Circle Internet stock is the Circle Payment Network (CPN), which was launched last year.

CPN aims to simplify how money moves globally through the power of stablecoins.

Circle is partnering with companies like banks and payment providers with the goal of solving the challenges that have existed for years.

Today, companies like banks use networks like Swift to move money globally. The challenge, however, is that this approach is often slow and expensive. 

CPN leverages the USDC stablecoin, enabling real-time payments for much lower fees.

As such, a transaction that takes hours to complete using the Swift network takes less than a minute to settle on CPN.

In its recent statement, the company said that it had signed up over 50 companies on its platform and that it was evaluating over 70 more.

There is a likelihood that this business will continue thriving in the coming years.

Growth is accelerating 

The most recent results showed that Circle's business is doing well.

Its revenue jumped by 77% in the fourth quarter to over $770 million, while its net income soared to $133 million. Circle’s EBITDA jumped to over $167 million.

Wall Street analysts believe that the company’s business will continue growing as demand for the USDC stablecoin accelerates.

The average estimate is that its annual revenue will be over $3.1 billion this year, a 13% increase.

It will then make over $4.3 billion in 2027, up by 38% from this year.

Circle Internet stock price technical analysis 

The daily timeframe chart shows that the CRCL stock has rebounded in the past few weeks.

This rally continued after the company published its financial results late last month.

Circle has now jumped above the 23.6% Fibonacci Retracement level at $107.

It has jumped above the key resistance level at $90, its highest level in December last year.

The stock has moved above the 50-day Exponential Moving Average (EMA).

Also, the Relative Strength Index (RSI) and the MACD indicators have continued rising.

Therefore, the most likely CRCL stock price forecast is bullish, with the next key target being the 50%Fibonacci Retracement level at $172, which is 55%.