USDC Growth Restart Sparks Optimism for Circle Amid Stablecoin Market Revival

Wall Street analysts at Bernstein have issued a positive report on Circle, saying that USDC is entering a new growth phase. The firm argues that USDC supply has increased by roughly $2 billion in seven days, marking a turnaround from six months of stagnant or declining growth.

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

The analysts point to several drivers for this potential growth cycle, including market momentum, US regulatory clarity, and tokenized capital markets. They also note that USDC's share of adjusted stablecoin transaction volume rose from around 40% in 2025 to more than 60% so far in 2026, overtaking USDt.

The report highlights early signals of stablecoin payments being used by artificial intelligence agents, which could introduce new automation patterns for transfers and increase demand over time. Bernstein's emphasis on USDC's rising transaction share suggests that usage dynamics are shifting in Circle's favor, but the analysts caution that sustained growth is still uncertain.