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Got $5,000? Should You Buy XRP (Ripple), or Strategy?

Key Points

  • XRP is seeing good uptake among banks and large investing groups.

  • Strategy's unique approach to buying Bitcoin is delivering leveraged returns.

  • One of these assets is more likely to keep you up at night than the other.

XRP (CRYPTO: XRP) and MicroStrategy (NASDAQ: MSTR) both soared during crypto's 2025 revival, with the fintech coin rising by 46% and the crypto treasury company climbing by 49% this year so far (as of July 18).

Yet one earns its keep by processing real transactions for banks and institutions, while the other is a listed company whose sole trick is piling more Bitcoin onto an already mountainous stack.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

But which route is going to lead to higher returns for investors with a moderately sized amount of starting capital to invest -- say, $5,000?

XRP is building utility today, and it's working

The XRP Ledger (XRPL) is gradually turning into an institutional finance support layer as a result of the consistent development work performed by its issuing company, Ripple.

Last month, Ripple and Circle ported Circle's stablecoin onto the XRPL to grease the wheels of on‑chain payments for users in the traditional financial sector, as well as for the decentralized finance (DeFi) sector. The overarching strategy here is to beef up the chain's platforms for stablecoins, tokenized U.S. Treasuries, and other real-world assets (RWAs), and then build out the compliance and identity-tracking features that banks and asset managers crave. The idea is that once the financial and regulatory infrastructure is in good condition, the target users will be heavily incentivized to show up because there aren't other blockchains that are as carefully tailored to their particular needs.

Why does that matter for those considering an investment in XRP?

Person looking at a stock chart screen in a dark room.

Image source: Getty Images.

Each ledger transfer requires a sliver of XRP crypto that is permanently burned upon the transaction's completion. The busier the network, the scarcer the coin becomes. If stablecoin liquidity and real-world asset settlement grow in volume, demand for fees and for escrow collateral should keep pace, creating a modest-to-moderate upward pressure on the coin's price.

Legal overhang is fading too, which lowers the risk of making an investment now.

In March, the Securities and Exchange Commission (SEC) signaled that it would abandon its appeal in its long-running lawsuit against Ripple, effectively ending a four‑year skirmish that once scared away institutions and a number of rightly cautious investors. Regulatory clarity doesn't directly feed through into short-term price appreciation, but it takes away the largest known tripwire for adoption, so it removes a significant drag on the asset's long-term potential.

Strategy is a levered bet on Bitcoin

Strategy is the corporate embodiment of the stereotypical diehard Bitcoin evangelical (some would say cultist) crowd. This means that it's all about buying as much Bitcoin as it can possibly afford, including by issuing new stock and taking out fresh debt, regardless of the coin's price.

As of July 14, it held about 601,550 bitcoins, purchased for $42.9 billion at an average cost of $71,268 each. At today's Bitcoin price of about $119,000, that holding is worth roughly $72 billion.

To expand the stack, management keeps issuing zero‑coupon convertible notes, including another $2  billion in February alone. It's going to continue in this same pattern until the cows come home.

For shareholders, that has paid off fairly well during the past five years.

MSTR Chart

MSTR data by YCharts.

Investors must understand that leverage supercharges Strategy's stock returns if Bitcoin rises, but it also magnifies pain. A 25% slide in the big orange coin would erase a vast amount of the company's value.

There's also a subtle timing mismatch. Strategy's convertible bonds mature years from now, starting in 2030, but historically, Bitcoin has shown that it can drop significantly in days and weeks. Strategy Executive Chairman Michael Saylor's conviction in the asset is legendary, but conviction doesn't repay debtors.

Finally, remember that Strategy is not Bitcoin -- there are actually a few ancillary activities the company still does related to its former identity as a software business. In other words, you're paying for its overhead in the name of getting exposure to Bitcoin, which you could replicate more cleanly with holding the coin itself.

Where $5,000 probably works harder

If your goal is to capture some upside in the crypto sector while taking on a moderate amount of risk, XRP looks like the preferable bet here.

The ledger is luring real revenue sources, like stablecoin float, cross‑border payment settlement, and tokenized treasuries, all while its biggest legal cloud just cleared. Assuming Ripple hits its roadmap milestones, institutional demand could continue to increase sharply during the next few years, sending XRP's price higher. It might not be a wealth-maker investment overnight, but the risk of a big implosion feels lower than during the lawsuit era, and it's undeniably finding traction right where it wants to.

Strategy is more of a racehorse for adrenaline seekers, which is to say that it's not a great play for the average investor. Should Bitcoin sprint to $200,000 by 2026, the stock's leverage could make XRP's gains look small. Yet that same leverage could become very cruel for shareholders if Bitcoin revisits $60,000, a level that would wipe out a huge chunk of the company's balance sheet and trigger harsh volatility. Most mainstream investors do not need that kind of insomnia-provoking asset in a retirement portfolio.

Therefore, for a $5,000 allocation today, XRP is the better option. Leave Strategy for those comfortable underwriting both Bitcoin's swings and a heavily indebted software company that moonlights as a crypto hedge fund.

Should you invest $1,000 in XRP right now?

Before you buy stock in XRP, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and XRP wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

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See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Alex Carchidi has positions in Bitcoin and Circle Internet Group. The Motley Fool has positions in and recommends Bitcoin and XRP. The Motley Fool has a disclosure policy.

These Are the 5 Hottest Stocks On Interactive Brokers

Key Points

  • Interactive Brokers is one of the largest digital brokerages, executing roughly 3.45 million trades per day.

  • The company recently released data about some of the most active stocks on its platform.

  • In today's world of investing, it is important to understand sentiment and which stocks are popular.

In today's market, while valuations are important, there are other factors impacting the movement of stocks, such as investment flows and sentiment. Part of this has to do with the rise of exchange-traded funds (ETFs), passive investing, and algorithmic trading. Understanding sentiment is important because it tells investors where flows are focused and what companies could be prone to big moves.

The large brokerage Interactive Brokers recently released data showing the 25 hottest stocks on its platform. The data is from July 8 and examines the preceding five business days. Here are the five most actively traded stocks on the platform.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

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Image source: Getty Images.

1. Tesla

It shouldn't surprise anyone to see Tesla (NASDAQ: TSLA) as the No. 1 stock on the list. The company and its outspoken CEO, Elon Musk, captivated the minds of investors as one of the first companies to make electric vehicles mainstream, and now as a company positioned to commercialize robotaxis and humanoid robots.

Musk's foray into politics this year created lots of controversy as well. With the stock trading at a meteoric valuation, Tesla became a battleground stock. Some think future initiatives like robotaxis and humanoid robots mean the sky is the limit. Others think the stock is a sell, especially with the core EV business struggling this year. While I wouldn't recommend shorting the stock because it has rarely traded on fundamentals, I remain on the sidelines due to the massive valuation.

2. Nvidia

Another obvious stock on this list is the artificial intelligence chip giant Nvidia (NASDAQ: NVDA), which is the largest publicly traded company and recently touched a $4 trillion market cap.

The market clearly thinks AI will revolutionize society as we know it. As the market opportunity gets bigger, investors are likely to keep driving up the price of Nvidia, which is the pre-eminent maker of the graphics processing units (GPUs) that train large language models (LLM).

Trading close to 38 times forward earnings, Nvidia is not that far above its five-year average. But below the surface are questions about the company's ability to maintain its monopoly and keep charging as much for chips as it has been. Nvidia also has other opportunities in autonomous driving and robotics that investors are starting to take notice of. I think investors can keep buying Nvidia but should probably take a dollar-cost averaging approach.

3. Circle

The stablecoin company and issuer of USDC, one of the largest stablecoins, has been quite popular since going public in June. Circle's (NYSE: CRCL) stock has already surged 554% from its initial public offering price of $31 per share.

Stablecoins, which are digital assets pegged to commodities or currencies, are viewed as the next major innovation in payments. Like cryptocurrencies, they have the ability to transfer money anywhere in the world, as long as the person or business has internet access. The associated fees are also lower than traditional payment methods. This makes stablecoins useful for people without access to the traditional banking system and for cross-border payments.

While stablecoins certainly have tremendous potential, Circle seems to have run too far too fast right now. USDC has a nearly $62 billion market cap, and Circle is now at about a $45 billion market cap. Furthermore, lower interest rates could decrease Circle's revenue, which is made by earning yield on the reserve currencies backing its stablecoins.

4. Palantir Technologies

The AI decision-making company Palantir Technologies (NASDAQ: PLTR) has appeared invincible, with its stock up 86% this year. The company's various platforms have the ability to pull in data from a variety of different sources, organize it in a central place, and derive insights using AI and machine learning. Palantir can examine potential scenarios, recommend actions, and then analyze the possible repercussions.

Palantir's platforms are easy to use for people who don't have experience working with LLMs. They can also track how certain data projects were created so they can be easily replicated or taken over by new managers. The company's products have been used by many different government departments and are resonating strongly with the business community as well.

Palantir trades at an even higher valuation than Tesla at 234 times forward earnings. I don't personally buy stocks at these kinds of valuations, but I also do see immense potential for the company. If you buy Palantir, I would once again take a dollar-cost-averaging approach.

5. Robinhood

The online brokerage Robinhood (NASDAQ: HOOD) blasted 138% higher this year, partly due to the crypto boom caused by President Donald Trump's administration's pro-crypto policies. The friendlier regulatory approach will make it easier for Robinhood to sell more cryptocurrencies on its platform, which could draw in more users and drive more activity among the company's existing user base.

As the pioneer of commission-free trading, Robinhood has never had issues bringing users to the platform. But more recently, the company has been able to better monetize users, primarily with the company's monthly $5 Robinhood Gold memberships, which offer users margin investing, competitive yield on brokerage cash, and many trading tools. The company has a very high conversion rate for new users signing up to become Gold members.

The Robinhood Gold Credit Card offers 3% cash back on all purchases, while the company also offers up to a 3% match on annual contributions to a Robinhood individual retirement account (IRA).

All of these features have made Robinhood an attractive place for people to conduct their banking activities. The stock isn't cheap, trading at 63 times forward earnings, but I do think the company has executed well and is driving an intriguing investment story.

Don’t miss this second chance at a potentially lucrative opportunity

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On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $427,709!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $40,087!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $671,477!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of July 7, 2025

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group, Nvidia, Palantir Technologies, and Tesla. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.

Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought

Cathie Wood kicked off the new trading week with one of her busiest shopping days of 2025. The CEO, co-founder, and ace stock picker at Ark Invest added to 15 of her existing stakes -- including Advanced Micro Devices (NASDAQ: AMD), Shopify (NASDAQ: SHOP), and Taiwan Semiconductor Manufacturing (NYSE: TSM) -- in her largest exchange-traded fund on Monday.

She sold only one stock in that aggressive growth fund, paring back her position in Circle Internet Group (NYSE: CRCL). Circle is the stablecoin issuer that also happens to be the market's hottest stock this month. She has now sold shares of Circle in four of the past six trading days.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Let's get back to Wood's shopping list. If Wood is buying more Advanced Micro Devices, Shopify, and Taiwan Semiconductor, then they're wroth a closer look.

1. Advanced Micro Devices

AMD is starting to roll again. The maker of microprocessors and graphics processing units (GPUs) is finally being recognized for its growing role in the artificial intelligence (AI) revolution, with the shares soaring 69% above their early April low. But AMD still has a long way to go before returning to its previous highs. Despite the big step up in the past two months, AMD has still surrendered 20% of its value over the past year, and the stock is 43% below last year's high-water mark.

Wood isn't the only one warming up to AMD on Monday. Melius Research upgraded its opinion from hold to buy. It also boosted its price target from $110 to $175, implying 35% in additional upside beyond the recent bounce.

Someone approaching a piggy bank with a hammer behind the back.

Image source: Getty Images.

AMD's business is growing as demand keeps rising for the AI chips necessary in the buildout of data centers. Revenue is accelerating for the fourth quarter in a row. AMD's top-line climb of 36% in its latest quarter is shy the growth rate of the AI leaders, but there's certainly enough potential to share the wealth.

Melius points out that the AMD story has gotten better in recent months, and not just because of the stock's upticks. Demand for AMD's GPUs should continue to rise for at least the next couple of years, and the company believes that it might top $8 a share in earnings within two years. That's a lofty goal. Analysts see AMD delivering an adjusted profit just shy of $7 a share in 2027.

2. Shopify

No one can take away Shopify's status as a classic growth stock, but it's an investment that has also meandered if you choose the right starting lines. Shopify is up just 20% over the past five years, clocking in with a modest 3% rise so far in 2025. But the e-commerce platform operator is faring better as a business.

Shopify has delivered at least a dozen consecutive years of better-than-20% annual revenue growth, and this year is off to a strong start. Its 27% year-over-year revenue increase through the first three months of this year is its healthiest top-line growth for the first quarter in four years. Its guidance in May calls for another year of growth north of 20%. It also sees its free cash flow margin sticking to the impressive 15% it scored in the first margin for the balance of the year.

3. Taiwan Semiconductor Manufacturing

Taiwan Semiconductor has a beautiful five-year chart compared to AMD and Shopify, but it's also up an ordinary 5% this year. However, business at TSMC is starting to pick up, just as it is for the other two companies in this piece.

Revenue climbed 42%, or 35% in U.S. dollars, in its latest quarter. That's the strongest top-line move for the world's largest foundry in more than two years. There may be some cyclicality here, but when TSMC is rolling, it operates at a high level, and it's rolling right now. The 43% net margin it scored in its first quarter means that $0.43 in every dollar of revenue it generated made it down to the bottom line. That's not a fluke. It has come through with a net margin north of 30% for the past 21 years.

TSMC is currently the ninth most valuable company by market cap among U.S.-exchange-listed companies. It's trading for 22 times this year's profit target. That isn't a cheap multiple, but it's lower than many of the names that are higher on the list. Accelerating growth with net income that's growing even faster can do wonders for a stock.

Should you invest $1,000 in Advanced Micro Devices right now?

Before you buy stock in Advanced Micro Devices, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $883,692!*

Now, it’s worth noting Stock Advisor’s total average return is 793% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 23, 2025

Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Shopify, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Where Will Coinbase Stock Be In 5 Years?

Coinbase (NASDAQ: COIN) is a leading crypto exchange, but the business is so much more than that. It's a stablecoin giant, infrastructure company, and blockchain operator with tremendous growth opportunities in the future.

*Stock prices used were end-of-day prices of June 13, 2025. The video was published on June 13, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Should you invest $1,000 in Coinbase Global right now?

Before you buy stock in Coinbase Global, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coinbase Global wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $891,722!*

Now, it’s worth noting Stock Advisor’s total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. JPMorgan Chase is an advertising partner of Motley Fool Money. Travis Hoium has positions in Alphabet, Circle Internet Group, Coinbase Global, and Ethereum. The Motley Fool has positions in and recommends Alphabet, Amazon, Bitcoin, Ethereum, and JPMorgan Chase. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.

Is This New Crypto Stock the Best Growth Stock to Buy Today?

The IPO market is alive and well, and the best example of that is Circle Internet Group (NYSE: CRCL). It's one of the hottest new crypto stocks on the market. It began trading on the New York Stock Exchange earlier this month, and from an initial public offering price of $31, it soared to a value of $133.56 as of June 13.

It doesn't hold Bitcoins or other risky digital assets, and it instead gives you a supposedly more stable way to invest in the crypto world. Here's what you need to know about the latest new crypto stock, and whether it's worth adding it to your portfolio today.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

A couple of investors looking at a series of charts.

Image source: Getty Images.

Circle Internet Group's business centers around its stablecoin

Unlike meme coins and risky, volatile assets, Circle Internet Group is an issuer of a stablecoin, USDC, which is pegged to the U.S. dollar. That means that by definition, it shouldn't experience a lot of volatility. Finding a stable investment while also investing in crypto is no easy task as often the big allure is to generate a huge profit from a fast-moving asset like Bitcoin. Circle Internet Group, however, could be a more enticing option for risk-averse investors.

The company recently launched the Circle Payments Network, which connects the USDC to eligible banks. By providing "near-instant settlement," it can help facilitate transactions all over the world. The company says that interest is growing. "We are seeing growth in start-up banks and neo-banks in many emerging markets focused on providing digital dollar payment and settlement services using USDC and the Circle stablecoin network," the company said in its IPO filing. By having more people use the network and its stablecoin, that can help Circle drive more growth for its business in the long run.

The company's financials look impressive

Circle generates revenue primarily from the interest it earns on cash it receives in exchange for USDC. Through the first three months of 2025, the company's revenue totaled $578.6 million, which was an increase of 58% from the same period last year. This was largely due to an increase in USDC in circulation, with daily averages rising by 93%.

What was most impressive was Circle's bottom line, however. It totaled $64.8 million and was up 33%. With a profit margin north of 11%, this is an investment that looks a lot safer than many other crypto stocks; Circle's financials didn't feature any wild swings in value due to gains or losses on digital assets.

Where Circle may struggle

The big risk with Circle is that inevitably, everything hinges on the success and popularity of its stablecoin, USDC. At its core, this can still be a volatile business. The most popular stablecoin right now is Tether, which has a market cap of $156 billion, versus $62 billion for USDC. If USDC's popularity suffers, that could pose a big risk to Circle's future growth and profitability.

Another risk is that its revenue is vulnerable to changing interest rates. If rates decline, that will negatively impact Circle's financials, as interest rates along with USDC adoption drive its top line.

While investors may like the idea of investing into a crypto stock with steady financials and sound operations, generating interest income on USDC funds doesn't exactly scream growth, and it may not be the type of investment that excites crypto investors in the long run. Circle's success depends on the overall popularity of USDC. Without significant and continued increases in adoption, this can quickly become a slow-growing business.

Should you buy Circle Internet Group stock?

Although it's been a hot buy since going public, Circle Internet Group stock may already be a bit of a pricey investment to be hanging on to today as its market cap is at around $37 billion, putting it at a price-to-revenue multiple of more than 19. It has a lot of potential growth ahead, especially as the crypto world grows in size, but there's a lot of competition in this space and although USDC is one of the top stablecoins today, that may not be the case in a few years. Paying such a high premium for the business may not make a lot of sense right now.

Circle Internet Group's fundamentals look good, but with many question marks around its long-term future, I wouldn't rush to buy it, especially given how fast it has already rallied. It may be better to take a wait-and-see approach with this investment.

Should you invest $1,000 in Circle Internet Group right now?

Before you buy stock in Circle Internet Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Circle Internet Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $883,386!*

Now, it’s worth noting Stock Advisor’s total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

Is This New Crypto Stock a Potential Millionaire-Maker?

The hottest crypto stock on the planet right now is Circle Internet Group (NYSE: CRCL), which debuted on the New York Stock Exchange on June 5. In its first day of trading, Circle was up nearly 170%. At one point, Circle was up more than 200%, and trading was halted several times, as the market struggled to keep up with demand.

There are only a handful of pure play crypto stocks right now for investors, and Circle might end up being the best of them. So what is Circle, and why should it be in your portfolio?

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Stablecoins

Circle is a direct play on the surging stablecoin industry, which is now valued at over $250 billion. Circle's stablecoin is USDC (CRYPTO: USDC), which currently has a $60 billion valuation, making it the 7th largest cryptocurrency in the world by market cap.

Thus, by getting exposure to Circle, you are getting exposure to a company that controls 25% of the rapidly growing stablecoin industry via USDC.

Green dollar symbol created from data points on digital charts.

Image source: Getty Images.

The easiest way to think about stablecoins is that they are "digital dollars." They are typically pegged 1:1 to the U.S. dollar, and that makes them very useful as an on-ramp to the world of blockchain finance. Institutional investors are increasingly using them to move money into crypto.

Thus, the surge in the stablecoin industry over the past five years can be seen as part of a broader trend: the shift from "physical dollars" to "digital dollars" and the growing mainstream appeal of crypto.

Stablecoins have even attracted the attention of the U.S. Treasury Department, which is now viewing them as a potential policy tool to support the U.S. dollar. In one scenario that has been discussed, stablecoins might also be used to reduce the amount of interest the government pays on its debt.

Circle's growth potential

As you might have guessed by now, Circle's future growth potential is off the charts. In Ark Invest's "Big Ideas 2025" report, CEO Cathie Wood dedicated an entire section to stablecoins and their potential to reshape the financial world. The numbers are just jaw-dropping.

In 2024, for example, annualized transaction value of stablecoins hit $15.6 trillion, far surpassing the transaction values of both Visa (NYSE: V) and Mastercard (NYSE: MA). While both credit card issuers still have significantly more transaction volume, they are now behind when it comes to transaction value.

The profit-making potential of stablecoin issuers such as Circle is also noteworthy. These stablecoin issuers make money on the dollar reserves used to support their stablecoins. Typically, they take their dollars, and then invest them in low-risk assets such as U.S. Treasury bills. This creates an incredibly capital-efficient business model that churns out profits.

Over time, Ark Invest expects stablecoins to become a bigger and bigger part of the global financial system. That will create more and more opportunities for Circle.

But what about competitors?

Just keep in mind: Circle is not the only company involved in stablecoins. Its primary competitor is Tether (CRYPTO: USDT), which is considerably larger. In fact, Tether has a market cap of $154 billion, which represents roughly 60% of the total value of the stablecoin market.

There are plenty more competitors on the way, given just how lucrative the business is. For example, World Liberty Financial, the crypto venture affiliated with the Trump family, recently launched a stablecoin of its own earlier this year. It now has a market cap of $2 billion, meaning it now ranks among the top 40 cryptocurrencies in the world.

Moreover, stablecoins are a truly global industry. As Ark Invest points out in its report, new euro-pegged and yen-pegged stablecoins are now starting to pop up. While dollar-pegged stablecoins currently represent 98% of total stablecoin supply, it's easy to see how that percentage could decline over time, especially if global trade pressures intensify.

Millionaire-maker potential

So does Circle have millionaire-maker potential? If you look at the phenomenal growth of the stablecoin industry over the past five years, it's hard to think that it does not. In June 2020, the total value of the stablecoin industry was approximately $10 billion. Today, it's $250 billion. So it has grown 25x over a period of just five years.

By way of comparison, the price of Bitcoin (CRYPTO: BTC) in June 2020 was $10,000, and today it is over $100,000. So, while Bitcoin is growing at a multiple of 10x, stablecoins are growing at an even more rapid rate of 25x. Impressive, right?

If you think Bitcoin has millionaire-maker potential, then so does Circle. There's a good reason why Circle was the most highly anticipated crypto IPO since Coinbase Global (NASDAQ: COIN) in 2021. It's simply one of the best pure play crypto stocks out there, with potentially stratospheric future growth potential ahead.

Should you invest $1,000 in Circle Internet Group right now?

Before you buy stock in Circle Internet Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Circle Internet Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 2, 2025

Dominic Basulto has positions in Bitcoin, Circle Internet Group, and USDC. The Motley Fool has positions in and recommends Bitcoin, Mastercard, and Visa. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.

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