Circle Set for New Growth Cycle as USDC Stablecoin Sees Surge

Analysts at Bernstein are bullish on Circle's prospects, predicting a new growth cycle for its USDC stablecoin over the next 12 months. The firm cites 'digital dollar reflation' as USDC's supply increased by roughly $2 billion in seven days, reversing six months of stagnant or declining growth.

Bernstein maintains an Outperform rating on Circle and a $140 price target, implying around 60% upside from current levels. This prediction comes after Circle shares have risen around 40% over the past month.

The analysts attribute potential stablecoin growth to several factors, including renewed momentum in crypto markets, growing regulatory clarity in the US, tokenized capital markets, and increased adoption of stablecoins for payments.