Circle Stock Soars 16% Following Strong Q4 Earnings

According to the company‘s earnings release, USDC circulation reached $75.3 billion at year-end, up 72% from a year earlier. That jump pointed to strong growth in the stablecoin’s overall use and market presence.

At the same time, USDC on-chain transaction volume in the fourth quarter climbed to $11.9 trillion. The company said that figure rose 247% year over year, showing a sharp increase in activity across the network.

Furthermore, Circle said total revenue and reserve income reached $770 million in the fourth quarter, up 77% from a year earlier. The result added to the companys strong finish and reinforced the momentum seen across its business.

Circles net income from continuing operations rose to $133 million from $129 million. Adjusted EBITDA also jumped to $167 million, up 412%.

Stablecoin Payment Activity Reached $400 Billion

Bitcoin was falling, but stablecoin growth did not slow down. By the end of last year, stablecoin payment volume had doubled to $400 billion, showing strong demand in a weak market.

Stripe also gained from the boom. The payments company, which is pursuing a PayPal deal, is now valued at $159 billion.

Commenting on Circle stocks fourth-quarter results, CEO Jeremy Allaire said the company sees a major turning point. He explained that the internet is moving beyond simply sharing information and is now starting to move value as well.

He also said blockchain, stablecoins, and AI should not be viewed as separate trends. Instead, he argued that they are coming together to build something much larger: a new global economic system designed to operate directly on the internet.

Allaire also said the world is moving toward a new phase in which hundreds of billions of AI agents will interact and carry out economic tasks online. In his view, that shift will change how value moves across the internet.

He added that these AI agents will need programmable digital dollars and open infrastructure to function at scale. He said Circle has been building exactly that foundation. He concluded that the opportunity ahead is larger than ever and that the company is only at the beginning.

Prediction Markets Could Drive Circle Stock Growth

It is also worth noting that Mizuho analysts recently raised their rating on CRCL stock to neutral from underperform. In their view, one key reason is Polymarket, which they see as a potential growth driver for Circle stock

The analysts pointed out that all bets on the prediction market platform are settled in USDC. As a result, stronger activity on Polymarket could support more demand and usage for Circles stablecoin.

Circle partnered with Polymarket in the fourth quarter of last year to expand the platforms use of USDC. The goal was to make USDC the main collateral and settlement asset across its markets.

Since then, Polymarket has continued to post record trading volumes as prediction markets attract more users. That trend supports stronger USDC usage and adds another positive signal for Circle.