Circle (CRCL) Stock Crashes after Rival Tether Hires Accounting Firm

FomoAnxiety · 2026-03-24T21:39:49+00:00

Circle's CRCL shares plummet as Tether announces its first audit of USDT reserves, spurring transparency concerns. Despite USDC's strong reputation with regular audits, analysts maintain a Moderate Buy rating with growth potential.

FomoAnxiety

2026-03-24 21:39:49

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Shares of stablecoin company Circle (CRCL) are experiencing their worst day ever after competitor Tether announced that it has hired a Big Four accounting firm to audit its USDT (USDT-USD) reserves for the first time. This move is significant because USDT is the largest stablecoin, with a market value of around $184 billion. However, Tether has faced years of criticism for not providing a full audit and instead issuing periodic reports that left some investors and regulators questioning how transparent its reserves really were.

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For context, stablecoins are designed to hold a steady value, usually tied to the U.S. dollar, and are backed by assets like cash and short-term government bonds. Because of this, audits are important to confirm that the reserves actually exist and are liquid. Therefore, working with a Big Four firm could help improve trust in USDT. This announcement also pressured Coinbase (COIN), which is closely tied to Circle’s USDC (USDC-USD).

Nevertheless, it is worth noting that Circle’s USDC is currently the second-largest stablecoin with a market value of about $78.6 billion and has built its reputation on full annual audits by Deloitte, along with monthly reports. Moreover, stablecoins have traditionally been used for trading and decentralized finance, but more recently, banks and fintech companies have started using them to move money quickly and cheaply across borders.

Is CRCL Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on CRCL stock based on 11 Buys, six Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average CRCL price target of $131 per share implies 33% upside potential.

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