Circle's stock fell 3.83% on August 19, closing at $71, even as the supply of its EURC stablecoin doubled over the past year and ARK Invest kept buying shares. The dip comes after a strong run that saw the stock climb 22% since August 3.
A 3.8% Slide on August 19
The stock closed at $71 on August 19, down 3.83% from the previous session. That's a notable pullback for a stock that had been on a tear. Since August 3, CRCL has gained 22%, driven in part by aggressive buying from ARK Invest. The August 19 drop suggests some investors are taking profits, though the stock remains well above its recent lows.
EURC Supply Doubles in a Year
Circle's EURC stablecoin has seen its supply grow by 100% over the past year. That means the amount of EURC in circulation has doubled. The growth is a sign that demand for euro-denominated stablecoins is rising, and it could be a positive for Circle's revenue, since the company earns fees on the reserves backing its stablecoins. The doubling comes as Circle continues to expand its stablecoin offerings beyond the US dollar.
ARK Invest's Aggressive Buying
ARK Invest has been a major buyer of Circle stock since August 3. The firm's aggressive buying has helped push CRCL up 22% over that period. ARK's interest in Circle likely stems from the company's position in the stablecoin market, which is growing rapidly. The August 19 dip, however, shows that even with ARK's support, the stock isn't immune to market swings.
The next trading session will show whether the dip is a temporary pause or the start of a longer correction. Investors will be watching to see if the EURC supply growth can continue to support the stock's valuation.
