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There are currently two stable coins in the market. One of them is US dollar tether. And the other is usdc. This usdc is produced by circle and even though circle has been operational for many years now, it has gone public on the New York stock exchange only about a month ago and that is how it has got renewed interests for the masses. And I also took a look that circle values are surging. Now I did know that circle existed for a long time. It has existed since before I joined crypto. So how is suddenly these circle stocks soaring high? There was a very simple answer and the answer is something that they would not like in the long term.

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![1000013637.jpg](https://files.peakd.com/file/peakd-hive/abrar-fahim/23wMwp4FwH58vW3ZkcDXNBXvz42yQAroepgtUZHzqzYVsYoU5hAef57LNUCABMiWNv4DM.jpg)
[Source](https://unsplash.com/photos/black-samsung-android-smartphone-with-white-background-699H4PEEEe0)

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The information is that Circle had a failed IPO back in 2021. So afterwards it did not make much noise. It was silent. Then fast forward to 2025. It is now listed in the New York stock exchange. And this is where things go. Crazy. The opening price of the shares were around $31 which ended at more than $100 by daybreak. There were multiple trading holes because of the sheer amount of volume that was flowing. Circle's market cap reached 36 billion. Well that's about all for the fun part. Circle has raised a lot of money and if you or someone who bought circle stocks when it was just debuting in the stock exchange then you might have made a lot of money as well. But things go a bit harder from here on out. We must understand how Circle’s finances work. Well it operates a lot like the Federal reserve. Its main source of income is the interests gathered from usdc reserves. But at the same time it needs to share a large part of that revenue with coinbase and sensitivity. So the valuation is there and the money making is there but what is left after the whole process is questionable. Considering the current bull market and how all this can fall on its face when the market collapses, because in the beer market, usdc reserves won't be as lucrative as it is now, I believe the current stock price of circle is overvalued. 

And you know what happens with an overvalued stock. It doesn't go down that easily but when it does it loses a lot of money and a lot of people are on the street. So anyone investing in Circle should rethink their position and calculate the risk with the overvalued stock and maybe buy it at a lower price if they can get it. I'm not giving financial advice, that's just my findings.

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