Circle Internet Group Inc. CRCL has been a standout stock in 2025, with a remarkable 129% increase since its IPO. However, CNBC host Jim Cramer has raised concerns about the company’s future in the stablecoin market.
What Happened: Cramer has expressed skepticism about its long-term competitive advantage in the stablecoin sector, as reported by Insider Monkey on Saturday.
"I question whether Circle is going to be proprietary," Cramer said. "Because anyone can set up a stablecoin. There's nothing proprietary about what they have. And that's my point."
He also voiced his reservations about the company’s future, stating, “It can be any part of the PARCs… Circle Internet Group, the red-hot recent IPO that I'm not particularly fond of because it's a stable coin play, and pretty soon, because of that GENIUS Act, I think it'll be flooded with stable coins.”
Why It Matters: Despite its recent success, Circle has been the subject of mixed opinions. Compass Point downgraded the company’s stock rating from Neutral to Sell last week and significantly reduced its price target following the latest U.S. stablecoin legislation.
This move came amid concerns about Circle’s long-term economic prospects at its current $53 billion valuation.
However, Citigroup Inc. C has expressed confidence in CRCL, seeing a 30% upside in the stock and backing the company as a key player in the stablecoin market. The endorsement from Citi suggests that Circle Internet Group’s upward trajectory is far from over.
Price Action: Circle shares have risen 131.72% over the past six months, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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