Stablecoin market bubble: expert warnings
Date: 2025-06-18 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Circle's recent IPO under the ticker CRCL on June 5 ended with an impressive increase in the stock price — from $31 to $82 in just 24 hours. This led to the company's valuation at $36 billion. One of the key participants in the placement was ARK Invest, which soon sold part of the shares for more than $51 million.
Former BitMEX CEO Arthur Hayes believes that such a success of Circle will spur a mass entry of new issuers to the market. In his opinion, most of them will be overvalued and will not stand the test of time. He also warns against opening short positions on shares of such companies due to high market volatility.
TYMO founder Georgy Verbitsky also expressed his point of view. He noted that investor interest in the stablecoin sector is really high: even small projects like Plasma receive significant funding. At the same time, the expert emphasizes the importance of choosing the right jurisdiction and strict compliance with regulatory requirements, which has become one of the reasons for Circle's success. In contrast, Tether, according to Verbitsky, demonstrates less openness in matters of regulation in the US market.
Hayes emphasizes that without access to large crypto exchanges, popular Web2 social networks or banks, new projects will not be able to ensure large-scale distribution. He called Circle "overvalued" and emphasized that half of the company's interest income goes to Coinbase, which does not prevent shareholders from maintaining the excitement around the securities.
Speaking about the success story of Tether, Hayes recalled that its popularity grew amid demand from traders from Asia, especially during the ICO boom in 2017, when USDT became the most important tool for trading altcoins.
According to Hayes, traditional banks and social networks will not rely on third-party stablecoins, but will create their own solutions. However, Verbitsky believes that banks are unlikely to change their profitable and established model, and social networks lack the competence to issue financial products, which was confirmed by the failure of Libra from Meta.
Investor interest in the shares of new issuers, according to Hayes, will remain high due to the profitability of the business. The issuance of stablecoins allows you to earn money by placing reserves in US Treasury bonds. At the same time, Tether, according to him, gets the most out of this thanks to its stable network.
Regulation is also moving forward: the US Senate approved an updated version of the GENIUS Act, which should simplify the use of stablecoins and make the United States a leader in the field of cryptocurrencies. According to the forecast of Treasury Secretary Scott Bessent, this could increase the volume of the stablecoin market to $ 3.7 trillion by the end of the decade.
