USDC Supply Surge Pumps Circle Shares

Circle's USDC stablecoin supply saw a significant increase of $1.7 billion in one week, marking an end to six months of sideways movement.

This growth could potentially lead to a 59% upside for Circle shares (ticker: CRCL), according to Bernstein's recent note reported by The Block.

The price target of $140 reflects analyst expectations and offers no guarantee of realization. Circle's growth thesis is expected to be supported by stablecoin payments, the representation of real-world assets on the blockchain, and automated payments via software agents.

The outcome of the Clarity Act, which aims to clarify crypto and stablecoin regulations in the U.S., will not impact Circle's growth according to Bernstein.

The September 15 vote could have implications for the reward model and regulatory pressure, but both scenarios are seen as positive for USDC. If the Senate rejects the bill, SEC and CFTC intervention could accelerate, although this is seen as a positive outcome for the stablecoin.