Stablecoin giant Circle (CRCL.US) stock price rides a roller coaster, Wall Street analysts have mixed opinions.

The stock price of "stablecoin first stock" Circle (CRCL.US) is like a "roller coaster ride", with the stock skyrocketing after its debut in early June, but recently experiencing a significant pullback. Wall Street analysts have mixed opinions on the stock. Needham rates Circle as a "buy". Needham analyst John Todaro believes that the company may be "in a paradigm shift area, supporting premium valuations similar to Tesla, Inc. (TSLA.US) or leading artificial intelligence (AI) companies." By market capitalization, Circle's USDC, pegged to the US dollar, is the second largest stablecoin issued. Todaro believes that USDC's dominant position as a "reserve asset" in the decentralized finance sector has attracted $12 billion in stable customer funds demand. The widespread application of stablecoin payments and remittances also supports Todaro's bullish view. On the other hand, JP Morgan rates Circle as a "hold". JP Morgan analyst Kenneth Worthington says that Circle has taken a first-mover advantage in a "winner-takes-all market." However, he adds that this also means a high valuation. Worthington states that Circle's IPO price range midpoint was $31 per share, equivalent to an $8 billion market cap. But its current stock price and market cap are $181.29 and $40 billion respectively. Meanwhile, Deutsche Bank believes that Circle's stock valuation is reasonable, giving it a "hold" rating. Deutsche Bank says, "Although we see stablecoins having the potential for widespread and strong applications in the industry, the outcomes are varied, which could lead to significant fluctuations in earnings forecasts and stock prices in the short term." Citigroup still rates Circle as a "buy" despite the significant increase in valuation. Citigroup analyst Peter Christiansen says, "We believe the scarcity value, 'winner-takes-all' model, huge potential market space, legislative driving force, and Circle's enormous operational leverage potential all provide strong support for the stock's future growth in the coming years."