Key Insights
- •Circle Internet Group announced a plan to launch a native token on the Arc Network.
- •CRCL stock fell 3% despite reporting a 66% increase in revenue and a 202% rise in net income in Q3 results.
- •Selling pressure in the crypto market is impacting stock performance.
Circle Internet Exploring Native Token Launch on Arc Network
Stablecoin firm Circle is exploring the possibility of launching a native token on the Arc Network, according to an official announcement on November 12.
The company stated that this initiative would help boost network participation and drive adoption. It aims to align the interests of Arc stakeholders and support the long-term growth and success of the Arc network.
Last month, Circle announced the launch of its Layer-1 blockchain Arc public testnet. This blockchain is designed to meet the needs of developers and companies looking to bring financial products on-chain.
Circle Reports Higher Revenue and Net Income in Q3
Circle Internet Group announced its Q3 earnings report, indicating that USDC stablecoin circulation was $73.7 billion at quarter end, marking a 108% increase year-over-year.
The company reported a total revenue and reserve income of $740 million, a 66% jump in total revenue.
Furthermore, net income rose 202% year-over-year to $214 million. The adjusted EBITDA also grew by 78% to $166 million.
At the time of writing, Circle's stock price had fallen 3.76% to $94.60 in premarket trading hours on Wednesday. The stock closed 5.57% lower at $98.30 on Tuesday.
The 24-hour trading range was between $97.95 and $102.49. The average trading volume was below the typical average of 10.87 million.
According to Yahoo Finance, the stock has dropped 26% over the past month, and year-to-date returns have reduced to 42%.
Bitcoin and Crypto Market Remain Under Pressure
Bitcoin's price was down 0.30% in the past 24 hours, trading at $105,092. The 24-hour low and high were recorded at $102,457 and $105,191, respectively.
Trading volume has decreased by 5% over the last 24 hours, suggesting a decline in trader interest.
Major altcoins, including ETH, XRP, BNB, SOL, ADA, and DOGE, were also experiencing selling pressure.
This profit-taking occurred following the latest ADP jobs data, which indicated that private employers in the US cut an average of 11,250 jobs per week in October.
This data signals further weakening of the labor market, with traders anticipating potential Fed rate cuts in December. According to 10x Research:
“Without a clear and durable macro catalyst, Bitcoin and the broader crypto market are likely to remain range-bound, even as long-term structural tailwinds continue to strengthen.”
Volumes in spot and derivatives markets have decreased, leading to increased demand for stablecoins such as USDC and USDT. At the time of writing, Circle's USDC market capitalization stood at $76.07 billion.