Circle’s recent $1.1 billion IPO is expected to bolster institutional interest in Ethereum, primarily because of USDC’s reliance on the Ethereum network. With over half of USDC's circulating supply—approximately $36.7 billion—existing on Ethereum, analysts assert that the stablecoin's success will positively impact Ethereum's ecosystem. They believe this concentration will enhance liquidity in decentralized finance (DeFi) projects and boost motivation for developers within the Ethereum network. This significant IPO has already led to a surge in Circle’s stock, which increased by 165% shortly after going public. As investors look into Circle's business model and the functioning of stablecoins, Ethereum's prominence is likely to rise, sparking further investment interest. This positive trend is also seen as potentially increasing net inflows into Ethereum-related investment products, further solidifying its position in the market, especially as it competes with other blockchain networks like Solana and Avalanche.

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