Circle Predicts New Growth Cycle for USDC Stablecoin

Analysts at Bernstein are optimistic about Circle's stablecoin issuer and predict a significant increase in value over the next year. The analysts point to 'digital dollar reflation' as USDC shows signs of growth after its supply increased by $2 billion in just seven days, reversing six months of stagnant or declining supply.

Bernstein maintains an Outperform rating on Circle (CRCL) and a $140 price target, implying about 60% upside from current levels. The analysts attribute the potential growth to several factors, including renewed momentum in crypto markets, greater regulatory clarity in the US, tokenized capital markets, and growing adoption of stablecoins for payments.

USDC has gained ground in transaction activity, with its share of adjusted stablecoin transaction volume rising from 40% in 2025 to over 60% so far in 2026. This growth is evident despite USDC remaining the second-largest dollar-backed stablecoin by market capitalization, behind Tether's USDt (USDT).