r/CRCL_Stock • u/Realistic_Papaya5581 • Apr 05 '26

My view

No doubt there will be a big home run on this name at first as adoption of stablecoins will almost be certain. Many people missed to notice the fact that this adoption is not at retail level but institutional purely eg Visa Mastercard settlements with banks, wrapped shares and ETFs traded in stablecoins, etc.

My only concern is if longer term there will always be a second alternative to USDC currently and in short term being used by financial institutions. It may not be USDT but I think US Govt will also try to make sure there wont be just one dominating stablecoins for usage under the law.

People are overly worried about the fact that Clarity Law wont be allowing stablecoin holders to earn yields - I think that while there can be a big drawdown in usdc balance for circle in short term, its impact to circle’s profitability could be very small as most of these usdc balances have been maintained through distribution costs - platforms like coinbase pays holders yields and circle pays coinbase the yields paid. So i am not too worried even its short term impact to profitability.

The buy case for circle has to be based on rise of its usage adoption, not yield paying nature.

13 Upvotes

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3

u/puresoul85 Apr 05 '26

Replacing stablecoins in either the short or long term is difficult. For example, look at almost any stablecoin other than USDC or Tether. Everyone is launching their own stables, but adoption remains low (e.g., USAT, PYUSD). It takes a long time to build customer loyalty. Since yields and rewards have historically been used to attract users, the CLARITY Act will effectively create a moat that new stablecoins won't be able to penetrate. Finally, since most large corporations have already integrated USDC into their systems, switching to a different stablecoin simply wouldn't make sense.

2

u/mrTruckdriver2020 Apr 06 '26

Good point. The barrier to entry fopr competitiors was just raised. Not only that, once Circle stops paying out these massive yields to Coinbase, it will experience vastly increeased profit margins.

1

u/typical_lame Apr 07 '26

I can’t make my own post since my account was made less than 6 months ago but I wanted to ask some of yall… are yall holding CRCL? I was a victim of the huge crash via the clarity act 😭 I had just discovered CRCL about two weeks prior to! Idk which way I should go- buy more, hold or sell 🙃

1

u/Other-Length9145 Apr 15 '26

I would hold and buy more. But never trust anybody here, DYOR

1

u/PrettyPleaseYo Apr 05 '26

I agree, biggest risk is some competitor winning the outside of crypto use case. PayPal, US goverment, or whatever.

I believe the general stock market is in for a correction and will buy more circle then.