Circle's stock surged to a record high of $138.57 on its third trading day, marking a significant gain of 347% from its IPO price of $31. Major institutions, including SBI Holdings and ARK Invest, have shown interest, with SBI investing $50 million in Circle's shares. ARK Invest also purchased 4.48 million shares, potentially yielding gains exceeding $524 million. The increased trading volume indicates strong investor enthusiasm, with nearly 37 million shares traded in one day. However, Circle's revenue, largely derived from interest earnings on cash backing its stablecoin USDC, may face pressure from potential rate cuts by the Federal Reserve. Reports indicate a 53% chance of a 25-basis point cut at the upcoming FOMC meeting, which could impact Circle's EBITDA negatively. Despite challenges, the company's growth prospects and increased institutional interest underscore its significance in the cryptocurrency market.

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