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Circle Stock Tumbles After Earnings Beat, USDC Surges
24 Mar
Summary
- Circle's Q4 2025 revenue reached $770 million, surpassing estimates.
- USDC usage saw a significant 600% year-over-year increase.
- Circle's stock experienced an approximately 18% drop following a recent rally.
Circle's Q4 2025 performance exceeded expectations, with the company reporting $770 million in revenue against a $745 million estimate, and earnings per share of $0.43 against a $0.35 forecast. This strong financial showing was accompanied by a significant 600% year-over-year increase in ERC-20 stablecoin activity, driving active addresses from approximately 85,000 to nearly 600,000.
Despite these positive operational metrics and a surge in USDC net supply by $4.5 billion year-to-date, Circle's stock (CRCL) experienced a sharp correction. The shares dropped around 18% on March 24, 2026, falling from a recent peak near $150 to trade closer to $104-$110. This pullback followed an impressive six-week rally that saw the stock gain between 100% and 160%.
Analysts noted that the recent rally had likely priced in strong interest income projections and tokenization plans. Concerns about lower future interest rates potentially reducing income from USDC reserves, coupled with high valuations, led traders to book profits. While CRCL stock is now about 35% below its recent peak, the underlying on-chain growth of USDC continues to show steady expansion.
