Bernstein Sees New Growth Cycle for USDC, Sets $140 Price Target for Circle

Analysts at Bernstein are optimistic about stablecoin issuer Circle and its USDC digital dollar. They believe that 'digital dollar reflation' is underway, with a significant increase in USDC supply over the past seven days. This growth cycle could boost Circle's performance in the next 12 months.

The firm points to several factors driving the growth, including renewed momentum in crypto markets, greater regulatory clarity in the United States, tokenized capital markets, and growing adoption of stablecoins for payments. They also highlight early signs of stablecoin use in payments made by artificial intelligence agents.

USDC has gained ground in transaction activity, overtaking USDt in adjusted stablecoin transaction volume. Its share rose from 40% in 2025 to over 60% so far in 2026. Stablecoin transaction volume has grown significantly this year.