Circle Internet Group (CRCL) shares have dropped 13.3% in the past week, underperforming the industry and sector. Concerns over its prospects arise from a public offering of 10 million shares at $130 each, with existing stockholders offering 8 million shares, causing worry among investors about long-term growth.

Since its IPO, CRCL shares have returned 70.1%, outperforming peers like Coinbase (COIN), PayPal (PYPL), and Fiserv (FI). The stablecoin provider’s valuation is high, trading at 11.14X forward P/S compared to the industry’s 3.38X.

USDC stablecoin usage by Circle Internet has grown significantly, with USDC in circulation reaching $65.2 billion as of August 10, 2025. The company has seen a surge in revenues and reserve income, driven by the growing adoption of stablecoins and an improved regulatory environment.

Despite steady earnings estimates for CRCL, concerns over valuation and competition from industry players like Coinbase, PayPal, and Fiserv make CRCL a risky bet in the near term. Operating expenses are expected to increase due to investments in platform expansion and partnerships.

Investors currently holding CRCL should stay put for the long term, considering the company’s prospects in a growing stablecoin market. However, a stretched valuation and competition pose risks, and potential margin pressure from rising operating expenses may impact the stock’s performance.

Read more at Nasdaq: Circle Internet Drops 13% in a Week: Buy, Sell or Hold the Stock?