Circle (CRCL) Becomes Breakout Stock in Seoul

New York-listed Circle (CRCL) has emerged as the breakout stock of June in South Korea.

According to Bloomberg, South Korean retail traders have invested nearly $450 million into shares of Circle Internet Group. This surge of investment makes Circle the most heavily bought overseas stock this month and a top-four pick for the year.

Since its June 5 debut, Circle’s stock has rallied over 500%, briefly reaching a $77 billion market cap. This valuation surpasses that of its issued stablecoin, USDC, which has a market cap of over $61 billion.

South Koreans have a history of driving euphoric rallies in their stock markets and major tokens like XRP and Dogecoin. This trend has resulted in the “Kimchi premium,” where local investors aggressively pursue high-volatility assets, causing prices to rise by 10%-20% on local exchanges compared to global markets.

The growing demand for Circle follows newly elected President Lee Jae Myung’s efforts to fast-track reforms aimed at legalizing KRW-backed stablecoins. This provides fintech giants like KakaoPay a clear path to issue a digital won. KakaoPay’s shares have surged 160% in June alone, and Korean investors are likely applying a similar strategy internationally, viewing Circle as a proxy for global stablecoin adoption.

While Circle is a newly public company, it is one of the few firms that provide pure exposure to the infrastructure layer of stablecoins, a sector in crypto that has gained momentum beyond niche circles.

Read more: Circle Drops 15%, Stock Frenzy Cools as BIS Warns of Stablecoin Risks