Bernstein analysts published a research note on Monday setting a $140 price target for Circle stock, citing a $2 billion increase in USDC supply over seven days as evidence of a new growth cycle for the second-largest dollar-backed stablecoin.
The price target implies 60% upside from current levels. Bernstein maintained an Outperform rating on Circle, the stablecoin issuer that went public in June 2025 at $31 per share.
USDC supply growth had stalled or declined for six months before the recent $2 billion increase reversed that trend. The stablecoin’s share of adjusted transaction volume rose from roughly 40% in 2025 to more than 60% in 2026 so far, overtaking Tether’s USDt by that measure.
Growth Drivers and Market Position
Bernstein identified several potential catalysts for USDC expansion. The firm cited renewed momentum in crypto markets, greater regulatory clarity in the US, growth in tokenized capital markets, and expanding stablecoin adoption for payments. Bernstein also noted early signs of stablecoin use in payments by artificial intelligence agents.
Circle’s financial performance has strengthened. The company generated $701 million in revenue in its most recent quarter and reported $48 million in net income. Circle raised $1.1 billion in capital during its June 2025 IPO.
Circle stock rose more than 40% over the past month. The stock had fallen back toward its IPO price by November 2025 during a broader crypto market downturn before the recent recovery.
USDC remains the second-largest dollar-backed stablecoin by market capitalization, behind Tether’s USDt. The transaction volume shift signals a structural shift in how traders and users allocate between the two dominant dollar stablecoins.
