Bitwise Analyst Says Circle Is Undervalued Ahead of Stablecoin Boom
Bitwise's Rasmussen argues Circle is mispriced by markets as stablecoin adoption accelerates toward a multitrillion-dollar future.
As stablecoins inch closer to mainstream financial infrastructure, one prominent voice in crypto asset management is sounding the alarm that the market may be dramatically underestimating one of the sector's most important players. Bitwise's Rasmussen has made the case that Circle — the company behind the USDC stablecoin — is mispriced, suggesting investors have not yet fully absorbed the implications of where stablecoin adoption is headed.
The argument rests on a broader thesis gaining traction in digital asset circles: that stablecoins are no longer a niche instrument for crypto traders but are evolving into foundational rails for global payments and dollar-denominated commerce. If that trajectory holds, companies positioned at the center of that infrastructure stand to capture enormous value — and Rasmussen's point is that Circle's current valuation does not reflect that potential.
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Circle occupies a distinctive position in the stablecoin landscape. As the issuer of USDC, one of the largest dollar-pegged stablecoins by market capitalization, the company earns revenue primarily through interest on the reserve assets backing its tokens. That business model becomes considerably more lucrative as stablecoin supply grows, making Circle's fortunes closely tied to broader adoption curves.
The framing of stablecoins heading toward the trillions is not merely speculative optimism — regulatory momentum in the United States and abroad has begun to catch up with the technology, with lawmakers exploring formal frameworks that could unlock institutional demand at a scale the market has not yet seen. Bitwise's thesis implies that early mispricing of Circle could represent a significant opportunity for investors who grasp the structural shift underway before consensus does.
Whether Rasmussen's valuation call proves prescient will depend heavily on how quickly regulatory clarity materializes and whether USDC can maintain or grow its share against competing stablecoins. Continue reading at CoinDesk.
