Shares of Circle Internet Group fell 9.9% to $85.10 after a Wall Street downgrade and broader crypto market concerns tied to a recent exploit.
Compass Point cut the stock to “sell” and set a $77 price target, implying further downside as analysts flagged valuation and risk concerns.
The decline adds to a broader slide, with Circle shares down 24% over the past month and 43% over six months despite earlier gains driven by rising adoption of USDC.
Regulatory uncertainty in the US has also weighed on sentiment, with delays in crypto legislation and opposition from banking groups to yield-bearing stablecoins.
Separately, fallout from the Drift Protocol exploit has added pressure across crypto markets, raising concerns about counterparty risk and DeFi stability.
Although Circle was not directly involved, the attacker reportedly moved funds into USDC, prompting questions about whether the assets could have been frozen.
Analysts at Bernstein said concerns may be overstated, citing strong reserve income and continued USDC growth, even as market sentiment remains fragile.