B y the close of Circle Internet Group’s first trading day on Thursday, June 5, its stock had rocketed to $88, a 180% jump from the price institutional investors paid for their

Stablecoin company Circle has soared in its market debut. But there are good reasons to not chase the stock at these lofty levels.

Shares of Circle surged after its debut as a public company, but the crypto player may face headwinds if the Federal Reserve cuts interest rates further this year.

Circle, the company behind the $61 billion stablecoin USDC, made a roaring debut on the New York Stock Exchange Thursday, becoming the first stablecoin issuer to go public and making CEO and cofounder Jeremy Allaire a billionaire.

The significant surge in Circle’s first-day trading could prompt institutional investors to set higher IPO prices for upcoming listings. Imminent IPOs include Omada Health, which is pricing on Thursday, and Chime, a challenger bank that’s set to list next week.

Circle’s $1 billion IPO marks one of the biggest fintech debuts in years, attracting major backers like SBI and Sigil.

Due to high demand, the stablecoin issuer increased its IPO from a planned 24 million shares. Circle is now worth anywhere from $6.8 billion to $8 billion on a fully diluted value. The company that powers the USDC stablecoin will start trading today on the New York Stock Exchange under the ticker symbol CRCL.

While Wall Street insiders enjoyed a first day "pop," it appears Circle could have pocketed much more from its debut.