CRCL drops 18% as USDC stablecoin usage surges 600%

Circle’s CRCL stock fell about 18% from recent highs, a sharp pullback after a 100%–160% multi-week rally. On March 24, CRCL traded roughly in the $104–$110 range, down ~35% from last week’s peak near $150 and more than 20% below March intraday highs. The move reflects a “reset” after strong expectations, not an apparent break in USDC demand. The contrast is stark: USDC growth remains the main catalyst. Data cited in the article says USDC added about $4.5B in net supply year-to-date, the largest increase among stablecoins in 2026. USDC is estimated at ~64% of adjusted stablecoin transaction volume, while ERC-20 stablecoin activity rose about 600% since March 2025, with active addresses climbing from ~85,000 to nearly 600,000. Fundamentals have also been strong. Circle reported Q4 2025 revenue of $770M and EPS of $0.43, both above estimates. Still, analysts warn the market may have priced in “high-rate carry” and future monetization (including interest income and tokenization/AI payments), leaving less room for disappointment. Additionally, a long-standing investment bank kept a “neutral” stance, citing concerns that lower future rates could compress Circle’s interest income from USDC reserves, and that a crypto price slowdown could affect USDC supply growth. What traders should watch next for CRCL: whether the USDC $4.5B net inflow trend continues, whether stablecoin active addresses keep rising or flatten, and how quickly the Fed’s path toward lower rates impacts USDC reserve yields. For CRCL, this 18% correction looks tied to expectations and rate sensitivity—so the next data points could decide whether it becomes a buying opportunity or a signal of slowing upside.