Circle Shares Could See 60% Surge on Stablecoin Growth, Bernstein Predicts

Circle's shares have more than doubled in recent weeks following an earnings beat that triggered a short squeeze. Analysts at Bernstein believe there is still room for growth, setting a $190 price target on Circle (CRCL) shares. This implies around 60% upside from the stock's current trading level of about $120.

The analysts say USDC adoption has diverged from the broader crypto market, with its supply recovering to near-record highs after a brief drop due to liquidity shock in October. At that time, USDC supply fell but has since rebounded to around $78 billion, while total stablecoin supply held steady at about $270 billion.

Bernstein notes that adjusted stablecoin transaction volumes grew over 90% year-over-year and transaction velocity increased, indicating use cases beyond crypto trading. Payments adoption is driving a significant share of growth in USDC usage, with Visa now supporting more than 130 stablecoin-linked cards across 50 countries.