Circle Internet Corp. (CRCL) shares tumbled 5.04% in intraday trading on Friday, as a combination of analyst downgrade and competitive pressure in the stablecoin market weighed on investor sentiment.

Mizuho analyst Dan Dolev lowered the firm's price target on Circle Internet to $45 from $50 while maintaining an Underperform rating on the stock. The bearish call came amid broader concerns about the company's growth trajectory in the digital asset space.

Adding to the negative momentum, Coinbase Global's latest earnings report revealed that its stablecoin business revenue declined 5% year-over-year. Coinbase, which serves as the largest distribution channel for Circle's USDC stablecoin, also announced it is joining the Open Standard alliance backed by Stripe, Visa, and Mastercard. The alliance issues a competing stablecoin called OpenUSD, raising concerns about intensifying competition for Circle's core USDC business. While Coinbase confirmed it will renew its revenue-sharing agreement with Circle under existing terms, the emergence of OpenUSD signals a potential threat to USDC's market dominance.