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Bitwise's Rasmussen: Circle is mispriced as stablecoins head toward trillions
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The big picture: In an interview on CoinDesk’s Public Keys, Bitwise Head of Research Ryan Rasmussen said investors are underestimating Circle’s opportunity as stablecoins move toward a multi-trillion-dollar market.
Rasmussen expects the stablecoin market to grow from roughly $300 billion to between $3 trillion and $5 trillion.
Closer look: Rasmussen’s thesis isn’t just that more stablecoins mean more reserve revenue for Circle — he sees payments infrastructure becoming a major second business.
Rasmussen said that expansion is being “very mispriced by the market,” as investors remain focused on Circle’s reserve-based business.
The competition: Banks, consumer companies and other incumbents are preparing their own stablecoins, but Rasmussen doesn’t see that as a major threat to Circle.