Circle's Undervaluation: A Mispriced Opportunity in Stablecoins

Stablecoin supply is accelerating rapidly, and one of its dominant issuers may be undervalued. Bitwise analyst Ryan Rasmussen believes Circle, issuer of the USDC stablecoin, is being mispriced by investors who see it as vulnerable to interest rate compression.

Circle has been quietly building a payments infrastructure that goes beyond simple on-chain dollar representation, with over $60 billion in assets backing its stablecoin. However, private market valuations do not fully reflect its position at the center of a rapidly expanding liquidity layer.

Rasmussen argues that investors are thinking too narrowly about Circle's business model. They see it as a stablecoin issuer, rather than an infrastructure company whose margins will hold up as payments volume scales.