Bernstein Sees New Growth Cycle for USDC, Sets $140 Price Target
Analysts at Bernstein are predicting a new growth cycle for USDC, driven by a recent surge in supply and transaction activity. The firm pointed to a $2 billion increase in USDC supply over seven days as evidence of 'digital dollar reflation.' This marks a reversal of six months of stagnant or declining growth.
The analysts maintained an Outperform rating on Circle and a $140 price target, implying about 60% upside from current levels. They cited several factors contributing to the potential next phase of stablecoin growth, including renewed crypto market activity, clearer US regulation, tokenized capital markets, and growing stablecoin adoption for payments.
Bernstein also noted early signs that AI agents may be using stablecoins in payments, which could become a significant trend as automation increases transaction volume. The firm highlighted Circle's improved financial results, including $701 million in revenue and $48 million in net income for its most recent quarter.