Circle's 'Big Quarter' Revenue Jumps 17% but Analysts Remain Skeptical
Circle Internet Group has reported a 17% revenue increase to $865 million, , while net income rose 5% to $226 million.MilkRoad CEO Kyle Reidhead called the results underwhelming, citing weak stablecoin supply growth despite rising adoption.ARC token presales contributed $182 million, or 21% of revenue, while reserve income fell 8% to $658 million.USDC circulation remained flat at $73.9 billion despite an 8% rise in average circulation.USDC Transaction Volume Hits $13.9 TrillionCircle CEO Jeremy Allaire highlighted “Q3 was a big quarter for Circle” with growing stablecoin adoption.USDC captured 79% of transaction volume, up from 66% a year earlier.On-chain volume surged 49% to $13.9 trillion, while minting and redemptions hit a record $208 billion.Circle Payments Network’s annualized volume jumped 15-fold to $41.3 billion and has since surpassed $58 billion.Allaire added that over 99% of AI agent payments using the x402 protocol settle in USDC, signaling stronger adoption despite stagnant circulating supply.Can Arc And GENIUS Act Drive Circle’s Next Growth Phase?Circle launched its Arc blockchain mainnet in September with over 100 participants and announced plans to acquire Tazapay, which processes more than $25 billion in annualized payments.The acquisition is expected to close in 2027, pending regulatory approval.Allaire sees the GENIUS Act’s January implementation as a major catalyst for stablecoin adoption, positioning Circle to benefit from growing demand for regulated digital dollars.Investors look out for rising transaction volumes to drive sustained USDC supply and revenue growth as lower interest rates pressure reserve income.Preview Image: Shutterstock