Bitwise: Investors May Be Undervaluing Circle's Payments Buildout; Stablecoin Market Seen Reaching $5 Trillion
AI Market Summary
Bitwise argues Circle's market opportunity is being underpriced as stablecoins could grow from ~$300B toward $3T–$5T, with investor focus overly concentrated on reserve-yield economics. The overlooked catalyst is Circle's payments infrastructure and potential Layer-1 (Arc) adoption by traditional finance, which would shift valuation drivers toward network effects and transaction-based revenue, supporting broader stablecoin sector optimism.
Impact level
● Medium
Affected assets
US/USDT-10.83%
AI Insight · US/USDTAI Insight
▲ Bullish
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Bitwise Head of Research Ryan Rasmussen said investors may be significantly underestimating Circle's addressable market as stablecoins scale beyond today's roughly $300 billion market capitalization, with potential to grow to $3 trillion to $5 trillion, CoinDesk reported. Rasmussen argued that market attention remains largely fixed on Circle's reserve-yield business, while discounting what he described as a "second growth curve": the payment infrastructure Circle is building. He said Circle's long-term upside could resemble that of global card networks such as Visa and Mastercard.
Rasmussen added that a key metric over the next year will be whether Circle's Arc blockchain—a Layer 1 network built specifically for stablecoin payments—wins adoption and integration across traditional finance. "Five years from now, Circle won't just be a stablecoin giant; it will be a payments giant," he said.
