Circle’s stock, CRCL, fell 17.5% to $62.63 on June 30, marking the biggest daily loss since March. It’s wIt is worth noting that in March, the stock fell by 20% after a draft proposal to ban stablecoin returns on dormant balance.
This has raised concerns about the potential limited adoption of USDC and the potential impact on the revenue outlook of the second-largest stablecoin issuer if the proposal is enacted. However, the decline on June 30 was driven by a new competitor in the stablecoin space.
Will the opening of the US dollar challenge Tether’s dominance?
A consortium of 140 companies, including traditional cross-border payment companies such as Visa, Mastercard, BlackRock and Google, has launched a new stablecoin, Open US Dollar (OUSD). According to the consortium, reserve profits will be shared between the partners, with no transfer fees.
Target for OUSD? Managing enterprise treasury and commercial payments. Although not entirely focused on retail, both sectors are also targeting Tether’s USDT and Circle’s USDC.
The new stablecoin will be rolled out later in the year, and Circle’s stock reaction suggests it could challenge its market share dominance. In fact, Matthew Siegel, head of digital research at asset management firm VanEck, echoed that stance as the stock fell on Tuesday.
$CRCL -13% as Stripe, Coinbase and BlackRock support rival stablecoin “Open USD”
Sam Ruskin, an investment partner at cryptocurrency-focused investment firm Reciprocal Ventures, also boosted Sigel’s outlook. He added,
This will either force Circle to continue revenue sharing agreements, or find new distributors for USDC (although almost everyone interested in stablecoins today supports OUSD). Whichever way you slice it, this looks bearish for Circle.
There has been increased competition in the stablecoin market after the passage of the GENIUS Act in 2025. In fact, during the same period, Tether’s USDT is still dominant, but its market share has shrunk from 62% to 59%.
On the other hand, Circle’s market share rose from 19% to 25% before falling slightly to 24% in 2026. It remains uncertain whether new competitors will erode this share. However, analysts remain bullish on the stock, with the consensus price target standing at $120, implying an upside of approximately 91% from current levels.
Final summary
- Circle’s stock, CRCL, saw a massive 17.5% loss on Tuesday
- This downward move came on the heels of a new competitor, Open USD, supported by Visa and 140 other partners.
