The market began to assess the potential impact of the new stabilizer on Circe before Open USD was scheduled to launch later this year. Analysts believe that concerns surrounding increased competition are already reflected in stock prices, but from the information available, sales may be large.

The analyst said the sales were overreacting.

Clear Street, in a report released on Wednesday, stated that although OUSD had a cooperative resource similar to the head-stabilized currency, there was no conclusive evidence that it could be used quickly. As a result, the turnback of the Circle stock "looks like overreacting."

The report argues that the competition narrative may still continue to influence market sentiment until OUSD is officially online. However, in the past, USDC has also faced the introduction of other stable currency products, which has not significantly weakened its overall position.

Allaire emphasizes the advantages of the existing network of USDC.

Faced with investors’ concerns about OUSD, Circe CEO Jeremy Allaire responded on X, emphasizing that USDC has built up a larger network base, which is the hardest part to make up for at the beginning of the line.

He said that a mature stable currency network usually requires several conditions to be put in place:

  • A wide range of services and applications
  • Adequate and stable mobility
  • Deep integration with policy and regulatory environment

Allaire stated that the sustained commitment of Circe and its thousands of partners around the world had resulted in a high-visibility and credible digital dollar infrastructure, and that the company had no intention of slowing the pace.

The USDC is still the second most stable.

According to the data, USDC is still the second-largest stable currency in the world and the fifth-largest encrypted currency with a market value of over $73 billion. The only stable currency ahead of it is the USDT issued by Tether, whose market value is about $184 billion.

Clear Street also offers a target price of $157 for the next 12 months of Circle. According to the report, this level is about 140 per cent higher than the price of the Wednesday deal. It also shows that some agencies still view the current recall as a centralized release of competition expectations rather than a re-pricing of the USDC fundamentals.