Stablecoins, Circle’s IPO, China’s quantum progress, and Middle East tensions caught the Web3 community’s attention this week.
What do Circle’s IPO and the GENIUS Act mean for decentralized crypto?
“Early investors in Circle will no doubt be thrilled by the stablecoin provider’s share price performance since its IPO earlier this month, as many will have more than doubled their money. What this means for decentralized cryptocurrency, though, is less clear.
“There was a time when the crypto industry could only dream of a clear US regulatory framework for stablecoins, and now it seems we have two approaching the finishing line. This has supported Circle’s share price and will continue to do so. Meanwhile, every company, from JP Morgan to Walmart, either launched or declared its intention to launch its own stablecoin.
“Many are celebrating the liquidity this stablecoin boom will supposedly bring to digital assets, but few seem to be clear where that liquidity will go. This is a question too few of us are asking ourselves.
“Because it seems unlikely all of this stablecoin liquidity will find its way into the decentralized crypto ecosystem. Indeed, it seems far more likely that it will stay in the hands of the centralized providers and systems controlling these assets.”
– Sebastian Pfeiffer, managing director of Impossible Cloud Network
How the GENIUS Act helps Circle and Coinbase
“Each USDC token is fully backed by real-world reserves like cash and short-term U.S. Treasuries, and it runs on multiple blockchain networks like Ethereum, Solana, Avalanche, and more. Traders use USDC as a steady bridge between crypto assets, and it’s also becoming a go-to for fast, low-cost payments across borders. It’s a key player in the world of decentralized finance (DeFi), where smart contracts rule and middlemen (like banks) take a back seat.
“After the GENIUS-Act made headlines, two names lit up the markets: Circle Internet Group and Coinbase Global.
“Circle, which just went public, saw its stock rocket 33.8% to nearly $200 via NYSE. Meanwhile, Coinbase – already a crypto heavyweight – climbed over 16% via NASDAQ to just above $295.
“Why the twin rally? Circle and Coinbase co-founded USDC and split the revenue down the middle. If USDC keeps growing – say, matching Tether’s massive $155 billion market cap – that’s a tsunami of volume flowing through their platforms. More transactions = more money. Simple as that.
“Right now, the price action is riding high on anticipation. The GENIUS-Act still needs to clear the House of Representatives, where a competing proposal – the STABLE Act – is also in play. And only then will a final version land on the President’s desk for a signature.
“But let’s talk Circle. The company’s NYSE-IPO price was just $31, its debut was $69, and now it’s sitting pretty at almost $200. That’s not a stock – it’s a rocket.
“Of course, this kind of hype comes with heat. The upside in the stablecoin space is huge, but so is the risk. You could ride this wave to new highs… or get your fingers burned.”
– Dirk Friczewsky, analyst, ActivTrades (https://www.activtrades.co.uk/en)
China’s quantum breakthrough
“The quantum threat is getting very real, very fast. Researchers in China just announced that they have managed to break 22-bit RSA encryption using D-Wave’s quantum computer. This encryption in itself isn’t the most secure, but what’s terrifying is the speed at which they have progressed from 19-bit to 22-bit encryption.
“It’s clearly only a matter of time until quantum computers can break highly secure algorithms, and that time is quickly running out. It’s complacent to assume we even have five years left before RSA encryption can be broken – it’s more like 24-36 months.
“In fact, quantum computing expert Michele Mosca gives a one-in-seven chance it will happen by next year, and IBM has highlighted quantum as an existential threat to data encryption. Researchers in both China and the US aren’t about to stop at what they have achieved so far. D-Wave is set to deploy 7,000+ qubit processors this year.
“To be safe, companies looking to protect encrypted data or digital assets must already transition to post-quantum cryptography this year – this is a recommendation from the National Institute of Standards and Technology (NIST) itself. Every single day this is delayed, cybercriminals are getting closer to hacking every system that matters, and once hacked, what’s lost can never be recovered. It’s getting far too close for comfort now.”
– David Carvalho, founder and CEO of decentralized post-quantum infrastructure Naoris Protocol
“It’s clear that China is steadily advancing in the quantum computing realm, and if the warning of former intelligence official Denis Mandich this week is accurate, China may soon outpace the US in this domain.
“Understandably, national security experts are concerned about the eventual arrival of a cryptanalytically relevant quantum computer, one that is powerful enough to break widely used encryption standards. In recent weeks, we’ve also seen the UK Chancellor’s announcement of a £750 million investment in a national supercomputer, highlighting the broader race to build platforms that support high-performance, specialized AI.
“Moving forward, I see quantum-readiness as essential to future-proofing critical systems.”
– Joe Z, co-founder of DeAgentAI, a platform enabling efficient deployment of high-performing AI models for specialized applications
Middle East’s influence over DeFi
“The recent Middle East conflict triggered a sharp selloff in crypto markets last week, with Bitcoin hitting its lowest point in over a month. We’re seeing DeFi’s growing sensitivity to sudden macro and geopolitical shocks in real-time, although the subsequent market rebound following the truce agreement demonstrates how sentiment-driven flows now move swiftly across both centralized and decentralized rails.
“For me, it’s obvious that protocols that unify DEX and lending functionality are increasingly vital, offering traders and LPs more efficient ways to manage volatility, access credit, and reposition rapidly in response to global events.”
– Sky, founder of LIKWID, a DeFi protocol unifying DEX and lending on Uniswap V4