Analysts at William Blair are still bullish, and called Circle a leader in a winner-take-most market, though they still warned about regulatory and competitive risks. At the same time, Circle is pushing deeper into on-chain finance with plans for a native token on its Arc layer-1 blockchain. Ark Invest Pounces on Circle Stock Cathie Wood’s Ark Invest made a big bet on Circle Internet Group this week by purchasing $30.5 million worth of the company’s shares across three of its exchange-traded funds, even as the stock suffered a sharp decline. The move proves Ark’s conviction in Circle’s long-term position in the digital payments and stablecoin sector, despite the market’s short-term reaction to the firm’s latest earnings report. According to public filings, the ARK Innovation ETF (ARKK) acquired 245,830 Circle shares on Wednesday, while the ARK Next Generation Internet ETF (ARKW) added another 70,613 shares. The ARK Fintech Innovation ETF (ARKF) rounded out the buying spree with 36,885 shares. The accumulation came on the same day Circle’s stock slid 12.2% to close at $86.30, which seemed to contradict the strength of Circle’s financial performance in the third quarter. Circle’s stock price over the past 24 hours (Source: Google Finance ) Circle reported total revenue of $740 million for the period, a year-on-year increase of 66%. Net income surged 202% to $214 million, thanks to the profitability of its expanding stablecoin and payments ecosystem. The company also revealed that the USDC stablecoin’s circulation reached $73.7 billion by the end of the quarter, up 108% from a year earlier. This is due to renewed institutional and global demand for dollar-backed digital assets. The selloff did not deter analysts at investment bank William Blair , who issued an “outperform” rating for the stock and urged investors to consider building positions while the price is under pressure. In their report, the analysts described Circle as a dominant force in what they expect to become a winner-take-most market. Its growing network infrastructure, including the Circle Payments Network and its emerging Arc platform, are especially attractive at the moment. However, they also acknowledged several risks that could shape Circle’s trajectory, including regulatory uncertainty around stablecoins, increased competition, fragmented industry standards, and the possibility that lower interest rates could impact revenue derived from stablecoin reserves. Despite the stock’s recent volatility, Ark’s aggressive accumulation and Circle’s accelerating ecosystem development suggest that major players are still very confident in the company’s long-term role at the center of global digital finance. Circle Plans Native Token for Arc Blockchain Circle is also preparing to introduce a native token for its Arc layer-1 blockchain as part of its ambitions in programmable on-chain finance. The Arc network is currently live in testnet, and is an enterprise-oriented Ethereum Virtual Machine (EVM) chain that is designed to support institutional-grade applications. Circle first launched the testnet in October, which attracted participation from major players including Goldman Sachs, BlackRock, Visa, and more than 100 other companies exploring the future of on-chain settlement and tokenized financial infrastructure. Announcement from Circle The company disclosed its plan for a native Arc token alongside its latest earnings report. While Circle initially intended for Arc’s gas fees to be paid in USDC and other stablecoins, the creation of a dedicated token suggests a shift toward building a more flexible ecosystem that can support governance, incentives, and long-term network sustainability. The development also forms part of the rising popularity of application-specific blockchains, or “appchains,” which focus on tailored use cases rather than serving as general-purpose networks. Appchains have gained traction as developers look for ways to avoid the bottlenecks of larger public blockchains, like slow transaction speeds, congestion, and high fees. By designing chains that are optimized for particular applications, developers can offer faster performance, better customization, and improved user experiences. Projects like Hyperliquid and Injective prove just how purpose-built layer-1 networks can power specialized applications with efficiency beyond what generalized networks typically offer. Despite this momentum, appchains are still a divisive concept in the crypto community. Critics warn that these specialized networks can fragment liquidity by isolating assets and activity across separate blockchains. They also argue that appchains often rely on centralized infrastructure, increasing security risks. Andre Cronje, co-founder of Sonic Labs, has been particularly vocal , and said that app-specific chains underestimate the immense cost and complexity involved in building and maintaining the surrounding infrastructure—such as explorers, custody, exchanges, bridges, developer toolkits, and regulatory compliance systems. Others, however, see the problems as solvable. Polygon Labs CEO Marc Boiron countered Cronje’s concerns by pointing to improvements in interoperability technology. He argued that as cross-chain communication becomes more seamless, fragmentation will diminish, allowing appchains to retain their benefits without sacrificing connectivity or ecosystem strength. Circle’s move to develop a native token for Arc suggests the company is confident that app-specific networks will play a major role in the future of blockchain adoption.
