USDC Momentum Accelerates as Bernstein Bets on Circle’s Next Growth Chapter
Bernstein expects a major stablecoin growth cycle ahead after USDC supply expanded by $2 billion in a week. The firm maintains a $140 price target on Circle, implying 60% upside, citing renewed crypto activity, regulatory clarity, and AI agent adoption.
USDC’s Supply Growth Reverses Six Months of Stagnation
The digital dollar landscape is shifting. According to Bernstein, as reported by Cointelegraph, USDC’s supply expanded by roughly $2 billion over a seven-day period—a development that breaks a prolonged six-month stretch marked by flat or shrinking issuance. The investment bank views this inflection as the beginning of what it describes as a “digital dollar reflation” cycle, with meaningful tailwinds expected to support expansion across the next 12 months.
Bernstein’s research team identified multiple drivers for continued stablecoin growth: resurgent momentum in crypto markets generally, improved regulatory clarity emerging across the United States, the rise of tokenized capital markets, and accelerating mainstream adoption of stablecoins for payment transactions. Perhaps most notably, analysts flagged early evidence that artificial intelligence agents are beginning to utilize stablecoins for transactional settlement—a nascent but potentially significant use case.
USDC Surpasses Tether in Transaction Volume Despite Trailing in Market Cap
USDC’s growing influence extends beyond supply metrics. While Tether’s USDT maintains the larger market capitalization, USDC has seized the lead in adjusted stablecoin transaction volume. Bernstein’s data shows USDC’s share of this measure climbed from approximately 40% in 2025 to more than 60% through 2026, effectively overtaking USDT as the dominant payment rail. This shift reveals a divergence between raw market size and actual transactional utility.
Circle, the company behind USDC, has captured investor enthusiasm. The stock surged roughly 40% over the preceding month, though shares remain below the peak valuations seen immediately after the firm’s June 2025 IPO at $31. Circle’s most recent quarterly results support the bullish narrative, with $701 million in revenue and $48 million in net income—both increases year-over-year—indicating the business is executing amid broader market recovery.
Bernstein Sees Major Upside, Market Validates Stablecoin Infrastructure Thesis
Bernstein maintains an Outperform rating on Circle and targets $140 per share, representing roughly 60% upside from current trading levels. The call reflects confidence that the stablecoin sector’s emerging growth cycle will translate into material gains for the company. Stablecoin transaction volume across the sector has expanded significantly this year, suggesting a broader acceptance of digital dollars as settlement infrastructure.
The confluence of regulatory progress, AI adoption, and renewed market activity paints a picture of stablecoins transitioning from experimental assets to operational necessities in both institutional and autonomous workflows.
Source: Bernstein, via Cointelegraph. Not financial advice.
A maturing stablecoin infrastructure and renewed focus on payment settlement utility signals an increasingly viable foundation for broader blockchain adoption and cross-chain transactions across the crypto ecosystem.