Bernstein Predicts USDC Growth Cycle Will Fuel Circle's Stock

Analysts at Bernstein believe that Circle's USDC stablecoin is entering a new expansion phase, which could result in significant growth for the company over the next year.

In a research note published on Monday, Bernstein pointed to a sharp increase in USDC supply growth and an improvement in the stablecoin's role within dollar-backed payments.

The firm noted that USDC's supply rose by roughly $2 billion in seven days, reversing six months of stagnant or declining growth. This acceleration was described as 'digital dollar reflation.'

Bernstein maintained a $140 price target on Circle and an Outperform rating, expecting the company to benefit from improved sentiment toward crypto, clearer US regulation, tokenized capital markets, and growing stablecoin adoption for payments.