Circle Shares Drop 16% After Open USD Launch Announcement – Analysts Call Fears Overblown
Circle (CRCL) shares fell sharply on Tuesday after the announcement of Open USD (OUSD), a new stablecoin backed by major companies including Visa, Stripe, Mastercard, BlackRock, and Coinbase.
The stock dropped more than 16% as investors worried about increased competition for USDC.
Analysts See Buying Opportunity
Analysts at William Blair described the sell-off as an overreaction. They reiterated their Outperform rating on Circle and called the dip a buying opportunity.
In their research note, analysts Andrew Jeffrey and Adib Choudhury stated that competitive concerns are “overblown.” They highlighted Circle’s strong advantages:
- $74 billion USDC market capitalization
- Deep liquidity
- Established Circle Payments Network
The analysts noted that competition in the stablecoin sector is inevitable but ultimately validates the industry’s long-term potential. They also expressed skepticism about Open USD, calling it “a solution searching for a problem.”
Circle CEO Responds
Circle CEO Jeremy Allaire responded confidently, stating that USDC remains “the most trusted, widely adopted, institutional-ready stablecoin in the world.”
Allaire said Circle will continue expanding its ecosystem and give partners more ways to benefit from USDC’s growth. He welcomed competition and innovation in building a “stablecoin-native internet financial system.”
Tether CEO Paolo Ardoino also reacted positively, saying “Welcome OUSD. Player 2 has entered the game.”
