The USD Coin issuer Circle could more than double its market capitalisation to reach $75 billion or beyond in the next four years, says the chief investment officer at crypto asset management provider Bitwise Asset Management. Circle’s market cap currently stands at around $27.6 billion, per Yahoo Finance data. “I can imagine scenarios where Circle is worth much more than my back-of-the-envelope 2030 estimate,” Matt Hougan wrote in a Wednesday blog post. The bullish forecast comes as US lawmakers, bankers, and stablecoin issuers remain at loggerheads over the Clarity Act.
Circle share prices took a tumble yesterday as markets anticipated bad news regarding the stablecoin yield question, but they have since rebounded slightly, gaining almost 3% in the past 24 hours, despite experiencing a 17% drop over the past five days. One popular view is that Circle’s share of the market will decline over time as big firms like Bank of America, Stripe, and Wells Fargo get involved in stablecoins, he wrote. “I’m not so sure. Historically, innovators do pretty well at protecting early market leads.” If Circle continues to corner 25% of the market in this time, maintaining or only slightly increasing its operating costs in the process, the USD Coin issuer’s worth could balloon beyond the $75 billion mark, Hougan said.
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