Circle Gets $140 Target as Bernstein Eyes USDC Growth Cycle
Analysts at Bernstein are bullish on stablecoin issuer Circle, arguing that a new growth cycle for its USDC stablecoin could provide a significant boost for the company over the next 12 months.
Intelligence analysis by Llama
Bernstein sees a new growth cycle for USDC, driven by factors like renewed momentum in crypto markets, greater regulatory clarity, and growing adoption of stablecoins for payments.
Imagine a digital dollar that's like a special kind of money that's always worth the same as a real dollar. This digital dollar, called USDC, is growing in popularity and could become a big player in the world of cryptocurrency.
Analysis
Bernstein's Bullish Outlook on USDC Growth Cycle
Analysts at Bernstein are optimistic about the future of USDC, citing several factors that could support further growth. The firm points to renewed momentum in crypto markets, greater regulatory clarity in the United States, and growing adoption of stablecoins for payments as key drivers of this growth cycle. Additionally, Bernstein notes that early signs of stablecoin use in payments made by artificial intelligence agents could be a significant catalyst for USDC's growth.
The Rise of USDC Transaction Activity
Bernstein's research highlights the significant increase in USDC transaction activity over the past year. The firm notes that USDC's share of adjusted stablecoin transaction volume has risen from roughly 40% in 2025 to more than 60% so far in 2026, overtaking USDt by that measure. This growth in transaction activity is a positive sign for USDC and could be a key driver of its future success.
Circle's Volatile Path Since IPO
Circle's shares have experienced significant swings since the company went public in June 2025. The stablecoin issuer priced its shares at $31 and raised roughly $1.1 billion in its initial public offering. After surging in the months following its debut, the stock had fallen back toward its IPO price by November 2025 as a broader crypto market downturn weighed on publicly traded companies with exposure to the sector. In its most recent quarter, Circle reported $701 million in revenue and $48 million in net income, both up from a year earlier.
Key points
- Analysts at Bernstein are bullish on USDC, citing several factors that could support further growth.
- USDC's share of adjusted stablecoin transaction volume has risen from roughly 40% in 2025 to more than 60% so far in 2026.
- Circle's shares have experienced significant swings since the company went public in June 2025.
- USDC's growth could be driven by factors like renewed momentum in crypto markets, greater regulatory clarity, and growing adoption of stablecoins for payments.
If USDC continues to grow in popularity, it could become a widely accepted form of payment and help drive the adoption of cryptocurrency in the mainstream. This could lead to increased revenue and growth for Circle, the company behind USDC.
However, the growth of USDC is not without risks. If the company is unable to manage its growth effectively, it could lead to increased competition and decreased market share. Additionally, regulatory changes could negatively impact the growth of USDC and the broader stablecoin market.
