A feverish wave of enthusiasm for Circle Internet Group has swept across South Korea, catapulting the company to the forefront of international stock picks for South Korean investors this June. According to Bloomberg, retail traders have injected nearly $450 million into Circle’s shares, making it the most purchased foreign stock this month and securing its spot as a top-four choice for the year. The company’s stock surged over 500% since its June 5 debut, at one point boasting a market cap of $77 billion, surpassing the $61 billion market cap of its issued stablecoin, USDC. This remarkable rise is further explored in Circle Stock in Up Only Mode Even as Bitcoin, Crypto Market Struggle—Why?.
The Kimchi Premium Effect
South Korean investors are no strangers to driving market frenzies. Known for sending ripples through the crypto landscape with the infamous “Kimchi premium,” they have a history of boosting the prices of high-volatility assets, such as XRP and dogecoin, often leading to price discrepancies of 10-20% on local exchanges compared to global markets. Circle’s meteoric rise seems to be the latest manifestation of this phenomenon, as local traders chase after what appears to be the next big player in the stablecoin arena.
Newly elected President Lee Jae Myung has added fuel to the fire by fast-tracking reforms to legalize Korean won-backed stablecoins. This move paves the way for fintech giants like KakaoPay to issue a digital won, a development that has seemingly ignited investor confidence. KakaoPay’s shares have skyrocketed by 160% this June, a clear indication that the appetite for stablecoin-related ventures is growing. It appears that the same logic is being applied to Circle, seen by many as a global proxy for stablecoin adoption.
A Fresh Public Debut
Circle’s recent IPO has opened the doors for investors seeking pure exposure to the infrastructure layer of stablecoins—one of the few sectors within the crypto industry that has shown significant momentum beyond niche circles. Despite its fresh public status, Circle is already a standout for those aiming to capitalize on the burgeoning stablecoin market. As detailed in Circle Hits New Record With Market Cap Nearing That of Coinbase, Circle’s market cap achievements are drawing comparisons with major industry players.
“There’s a palpable sense of optimism around stablecoins right now, especially with the regulatory landscape in South Korea evolving so rapidly,” notes crypto analyst Hyun Soo Kim. “The convergence of policy reform and market appetite is a perfect storm that Circle is riding to its advantage.”
Yet, the swift ascent of Circle’s stock hasn’t been without its bumps. Market volatility and regulatory warnings serve as reminders of the inherent risks associated with the sector. Just recently, Circle’s stock saw a 15% dip after the Bank for International Settlements cautioned about potential risks tied to stablecoins. This hiccup underscores the market’s unpredictable nature, raising questions about whether the current trend has the staying power investors hope for.
Looking Forward
As Circle continues to captivate South Korean investors, the broader implications for the stablecoin market remain uncertain. The regulatory green light for KRW-backed stablecoins could further bolster interest, yet the sector’s inherently volatile nature leaves room for skepticism.
What lies ahead for Circle and its investors is a landscape rich with potential but fraught with challenges. The coming months will likely reveal whether this surge in interest marks a sustainable shift or if it’s merely another chapter in South Korea’s history of speculative fervor.
The story is far from over, and as the market evolves, so too will the narratives surrounding Circle and the stablecoin industry at large. For now, investors are keeping a watchful eye on developments, eager to see where this rollercoaster ride will take them next.
Source
This article is based on: Circle Mania Grips South Korea as Retail Investors Pile Into Stablecoin Play
Further Reading
Deepen your understanding with these related articles:
- Circle Drops 15%, Stock Frenzy Cools as BIS Warns of Stablecoin Risks
- South Korea’s central bank wants gradual stablecoin rollout
- As stablecoin bill heads to House, Senate shifts to market structure
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
