Why Backpack Could Be the Next Circle in the Crypto Stock Boom: A Data-Driven Analysis

The Circle Paradigm and Crypto’s Wall Street Infiltration

When Circle’s NYSE debut triggered a 168% price surge, traditional investors finally grasped what we in crypto knew: blockchain enterprises can mint billion-dollar valuations while reshaping finance. Now, as Kraken and Ripple jostle to become “the next Circle,” my quant models spotlight an unconventional contender - Backpack.

Web3 Authenticity: A Scarce Commodity

Scrolling through 45 crypto-related stocks reveals a harsh truth: 53% are mining firms like Bit Digital, while another 20% resemble Bitcoin hoarders à la MicroStrategy. As Backpack CEO Armani Ferrante tweeted: “Wall Street craves measurable crypto plays, but real Web3 unicorns remain vanishingly rare.”

Backpack breaks the mold with its trifecta:

1. Wallet-as-platform (xNFTs = Web3’s answer to WeChat Mini Programs)
2. Exchange with auto-lend protocols (5.56% APY via USDC/pyUSD pools)
3. Mad Lads NFT community (8,000 holders generating viral content)

Compliance: The Silent Weapon

While Kraken’s IPO plans stall since 2021, Backpack’s secret sauce lies in its ex-FTX legal team. Having processed FTX EU withdrawals flawlessly, they’ve secured operational licenses across jurisdictions covering 95% of global GDP - a regulatory moat most crypto exchanges still struggle to cross.

Valuation Math: Connecting the Dots

My back-of-the-envelope calculation:

• Current metrics: \(11B daily derivatives volume, \)165M lent assets
• Comparables: Coinbase trades at 12x revenue; applying even half that multiple to Backpack’s growth trajectory suggests… well, let’s just say my algorithmic trading bot is paying attention.

The playbook is clear: In 2025’s crypto-stock gold rush, authentic Web3 infrastructure + ironclad compliance = the formula Circle proved viable. Whether Backpack claims the throne depends on executing its Season 2 user incentives without regulatory stumbles. But as someone who called Bitcoin’s 2021 top, I’m cautiously bullish.