Circle's debut on the New York Stock Exchange (NYSE) marks the beginning of a new wave of startups in the stablecoin sector. However, experts believe that many of these new players will struggle to achieve success.
Circle's Debut on the NYSE
On June 5, 2025, Circle successfully conducted its IPO on the NYSE, recording a 168% increase in stock prices. This impressive start indicates a growing interest in stablecoins in the stock market.
Arthur Hayes' Predictions
Arthur Hayes, co-founder of BitMEX, believes that many startups will attempt to replicate Circle's success following its successful debut. In his blog, he noted that "this stablecoin mania has only just begun" and predicted a potential crash after the launch of the first public stablecoin issuer utilizing complex financial engineering. Hayes also pointed out the significant overvaluation of Circle but acknowledged that its stock may continue to rise initially.
Chances of New Companies Succeeding
Hayes emphasized that new companies looking to enter the stablecoin market must establish strong distribution channels. Without these channels, he believes "these companies have no chance of success." He mentioned that key distribution avenues have already been secured by existing players, creating serious barriers for new startups.
Circle's success in the stock market may encourage numerous startups to create their own stablecoins, but the reality may be more complex. Key obstacles, such as the lack of distribution channels, could be a decisive factor for the new generation of stablecoin companies.