Circle Internet Stock Slides Amid CirBTC Disappointment and Stablecoin Competition
Circle Internet stock is experiencing a downturn in morning trading, dropping 5.2% to $90.60 after a strong rally on Monday.
The decline is attributed to investors taking profits and reevaluating Circle's latest product launch, cirBTC, which has seen limited adoption despite the company holding over 42.5 Bitcoin across 14 addresses at more than 106% coverage.
The stark contrast in reserve readiness compared to market uptake raises concerns about cirBTC's competitiveness in the Ethereum wrapped Bitcoin market, where established competitors cbBTC dominate with larger supplies and mature trading ecosystems.
A lingering competitive overhang from a Wall Street Journal report in late August continues to weigh on sentiment, as major banks evaluate launching their own stablecoins, directly threatening Circle's core franchise.