Bernstein has set a $140 price target on Circle stock, arguing that a new growth cycle for its USDC stablecoin could lift the company over the next twelve months. The call follows a $2 billion jump in USDC supply over seven days, reversing months of stagnation.
Bernstein analysts see a new growth cycle building for Circle's USDC stablecoin. In a research note published Monday, the firm maintained an Outperform rating on Circle (CRCL) and set a $140 price target, implying roughly 60% upside from current levels.
USDC supply reverses months of stagnation
The bullish case rests on fresh supply data. Bernstein said USDC's supply increased by roughly $2 billion in seven days, reversing a six-month stretch of stagnant or declining growth. According to Bernstein, the trend reflects what the firm calls "digital dollar reflation".
The analysts said the next phase of stablecoin growth could be driven by renewed momentum in crypto markets, greater regulatory clarity in the United States, tokenized capital markets and growing adoption of stablecoins for payments. They also pointed to early signs of stablecoin use in payments made by artificial intelligence agents.
Although USDC remains the second-largest dollar-backed stablecoin by market capitalization, well behind Tether's USDt, it has gained ground in transaction activity. Bernstein said USDC's share of adjusted stablecoin transaction volume rose from roughly 40% in 2025 to more than 60% so far in 2026, overtaking USDt by that measure.
Circle's volatile path since its IPO
Circle shares have swung sharply 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.
Since then, momentum has shifted again: Circle shares have risen roughly 40% over the past month. In its most recent quarter, Circle reported $701 million in revenue and $48 million in net income, both up from a year earlier.
Source: Cointelegraph.com News
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