Bernstein has raised its price target for Circle to $140, maintaining an Outperform rating as the firm anticipates a new growth cycle for its USDC stablecoin.
The investment bank highlighted a $2 billion increase in USDC supply within seven days, reversing six months of stagnation or decline. Circle’s shares have climbed about 40% over the past month, reflecting renewed investor interest tied to the stablecoin’s expanding adoption.
Bernstein identified several drivers for the next phase of stablecoin growth, including renewed momentum in crypto markets, increased regulatory clarity in the U.S., the expansion of tokenized capital markets, and broader use of stablecoins for payments. Early adoption of stablecoins in AI-driven payment transactions was also cited as a potential catalyst.
While USDC remains the second-largest dollar-backed stablecoin by market capitalization behind Tether’s USDt, it has overtaken USDt in adjusted transaction volume. Bernstein noted USDC’s share of stablecoin transaction volume rose from roughly 40% in 2025 to over 60% so far in 2026.
Circle’s recent financial performance showed revenue of $701 million and net income of $48 million in its most recent quarter, both up from the prior year. The company went public in June 2025 at $31 per share, raising approximately $1.1 billion, though its stock has experienced volatility amid broader crypto market downturns.
