As Circle gains popularity, cryptocurrency assets are "crowding into the market," and the cryptocurrency community struggles to understand the enthusiasm for the stock market

The cryptocurrency market's frenzy is sweeping the global stock market in unexpected ways.

According to media reports, following the surge of Circle, a stablecoin issuer, whose stock price skyrocketed eightfold within two weeks post-IPO, several cryptocurrency exchanges including Kraken, Gemini, and Bullish are preparing for listings, and OKX, one of the top three cryptocurrency exchanges globally, has explicitly stated that it is considering an IPO in the United States.

The shift in the U.S. policy environment has provided momentum for this frenzy, with Trump's supportive stance towards the cryptocurrency industry and potential expectations for relaxed regulations significantly boosting market confidence.

OKX Chief Marketing Officer Haider Rafique stated that there has been a "significant shift" in the U.S. attitude towards cryptocurrencies since the last administration:

"We will absolutely consider an IPO in the future, and if we go public, it will likely be in the U.S."

Rob Hadick, a partner at cryptocurrency venture capital firm Dragonfly, commented:

"There is unlikely to be a better IPO opportunity than this; people are accelerating their timelines."

Cryptocurrency Frenzy Shifts to Stock Market, Valuation Premium Sparks Debate

Unlike the traditional cryptocurrency market, the current frenzy is more reflected in stock market performance.

Since Circle went public on June 5 at an IPO price of $31, its stock price has soared to $240, with a market capitalization reaching $58 billion, making it one of the companies with the largest first-day gains in recent billion-dollar IPOs.

MicroStrategy (now Strategy) has become a market favorite by holding Bitcoin. According to cryptocurrency consulting firm Architect Partners, since Strategy first purchased Bitcoin in 2020, publicly listed companies worldwide have announced raising at least $72 billion to purchase crypto assets, with most transactions occurring in 2025.

Jeff Dorman, Chief Investment Officer of cryptocurrency fund management company Arca, pointed out:

"The interest in cryptocurrencies among investors who have not yet invested is far greater than that of actual cryptocurrency users. Cryptocurrency stocks or proxy stocks have outperformed cryptocurrencies themselves, a trend that has persisted for three to four months."

Eighteen months ago, the presence of the cryptocurrency industry in the stock market was minimal. This situation changed after the approval of Bitcoin spot ETFs in early 2024.

Divergence Between Crypto "Natives" and New Stock Market Darlings

Despite the stock market's enthusiasm for crypto-related companies, there are significant divisions within the investor community.

Traditional crypto investors are skeptical of the current premium phenomenon, believing that the valuations of publicly listed companies holding crypto assets should not consistently exceed the value of the assets themselves.

Hadick from Dragonfly stated:

"When the premium disappears, investors will quickly sell off their stocks; these phenomena are often short-lived."

Last week, after SharpLink Gaming, which holds Ethereum, announced it would allow private placement investors to sell their shares, its stock price plummeted by 70%, highlighting the high volatility of the marketTheir views on stablecoins also differ, as the exchange rate of stablecoins to the US dollar is one-to-one.

Hadick stated that cryptocurrency investors believe Circle's stablecoin has limited uses, primarily for trading. In contrast, stock market investors are more optimistic about the future of stablecoins, betting that they may become a major payment tool in the financial system.

Hadick said:

“The growth story we are talking about now is not a cryptocurrency story, but a traditional payment story... This is a world that the vast majority of cryptocurrency people simply do not understand.”