B y the close of Circle Internet Group’s first trading day on Thursday, June 5, its stock had rocketed to $88, a 180% jump from the price institutional investors paid for their

Stablecoin company Circle has soared in its market debut. But there are good reasons to not chase the stock at these lofty levels.

Shares of Circle surged after its debut as a public company, but the crypto player may face headwinds if the Federal Reserve cuts interest rates further this year.

Circle, the company behind the $61 billion stablecoin USDC, made a roaring debut on the New York Stock Exchange Thursday, becoming the first stablecoin issuer to go public and making CEO and cofounder Jeremy Allaire a billionaire.

The significant surge in Circle’s first-day trading could prompt institutional investors to set higher IPO prices for upcoming listings. Imminent IPOs include Omada Health, which is pricing on Thursday, and Chime, a challenger bank that’s set to list next week.

While Wall Street insiders enjoyed a first day "pop," it appears Circle could have pocketed much more from its debut.

Circle priced its initial public offering (IPO) on Wednesday at $31 per share, above the expected range of $24 to $26. The company sold around 34 million shares in the offering for a valuation of $1.1 billion. Bloomberg pegs the total amount raised in the IPO at $6.9 billion.

The market for initial public offerings seems to be improving after the stock selloff linked to tariff concerns in early April. Shares in Voyager Technologies rose sharply in their debut on the New York Stock Exchange on Tuesday.