Analysts at Bernstein are bullish on stablecoin issuer Circle, arguing {that a} new progress cycle for its USDC stablecoin might present a big increase for the corporate over the following 12 months.
In a analysis observe revealed Monday, Bernstein mentioned USDC (USDC) is exhibiting indicators of what it known as “digital greenback reflation” after its provide elevated by roughly $2 billion in seven days, reversing a six-month stretch of stagnant or declining progress. The agency maintained an Outperform score on Circle (CRCL) and a $140 worth goal, implying roughly 60% upside from present ranges. Circle shares have risen roughly 40% over the previous month.
Bernstein mentioned the following section of stablecoin progress may very well be pushed by a number of components, together with renewed momentum in crypto markets, larger regulatory readability in the US, tokenized capital markets and rising adoption of stablecoins for funds. The analysts additionally pointed to early indicators of stablecoin use in funds made by synthetic intelligence brokers.
Though USDC stays the second-largest dollar-backed stablecoin by market capitalization, effectively behind Tether’s USDt (USDT), it has gained vital floor in transaction exercise. Bernstein mentioned USDC’s share of adjusted stablecoin transaction quantity rose from roughly 40% in 2025 to greater than 60% up to now in 2026, overtaking USDt by that measure.
Stablecoin transaction quantity has grown considerably this 12 months. Supply: Bernstein
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Circle’s unstable path since its IPO
Circle shares have skilled vital swings because the firm went public in June 2025. The stablecoin issuer priced its shares at $31 and raised roughly $1.1 billion in its preliminary public providing. After surging within the months following its debut, the inventory had fallen again towards its IPO worth by November 2025 as a broader crypto market downturn weighed on publicly traded firms with publicity to the sector.
In its most up-to-date quarter, Circle reported $701 million in income and $48 million in web revenue, each up from a 12 months earlier.
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