Bernstein Predicts New Growth Cycle for Circle's USDC Stablecoin

Analysts at Bernstein believe USDC's recent surge in supply is indicative of a new growth cycle for Circle, the issuer of the stablecoin. In a research note published on Monday, they cited increased transaction activity as one factor driving this growth, and pointed to several other factors that could support further expansion.

The analysts noted that USDC supply has increased by roughly $2 billion in seven days, marking a reversal of six months of stagnant or declining growth. They maintained an Outperform rating on Circle (CRCL) with a price target of $140, implying approximately 60% upside from current levels.

Bernstein sees several factors driving the next phase of stablecoin growth, including renewed momentum in crypto markets and greater regulatory clarity in the US. The analysts also pointed to growing adoption of stablecoins for payments and early signs of their use in transactions made by artificial intelligence agents.