Catenaa, Friday, August 15, 2025-Bernstein analysts reaffirmed their bullish outlook on Circle, predicting the issuer of the USDC stablecoin will become the most dominant network in the sector and reiterating a $230 price target, representing a 40% upside from current levels.
In a note to clients Wednesday, the firm said “the most liquid, regulated stablecoin will win,” with Circle’s liquidity, regulatory compliance, and payment-focused infrastructure giving it a long-term edge despite concerns over potential competition from Tether, new entrants, and changing interest rates.
Circle, the second-largest stablecoin issuer with $65 billion in circulation, reported strong second-quarter results Tuesday alongside unveiling plans for its own Layer 1 blockchain, Arc. The EVM-compatible chain, launching in public testnet this fall, will use USDC as native gas and target stablecoin payments, FX, and capital markets applications.
Bernstein analysts said Arc could deepen USDC adoption by creating more payment and banking-focused transaction volume, with gas fees boosting revenue.
They cited Circle’s growing market share on exchanges like Binance, strong partnerships with major financial players, and regulatory advantages across 24 blockchains.
In Q2, USDC supply rose 90% year-over-year to $61.3 billion, with further growth in early Q3. Revenue jumped 53% to $658 million, while other revenue surged 252% on subscription and transaction services. Circle posted a $482 million net loss due to IPO-related charges.
Circle’s shares closed up 1.3% Tuesday but fell 5.4% in early Wednesday trading. Bernstein expects Q3 to be the key quarter to watch.
