- Circle’s USDC supply has surged to $72.5B, beating Wall Street’s 2025 forecast.
- Market share versus Tether (USDT) is up to 30%, showing accelerating adoption.
- Bernstein rates Circle stock outperform with a $230 target, citing long-term growth.
Circle’s stablecoin USDC is on a roll, and Wall Street is taking notice. According to a new report from brokerage giant Bernstein, USDC supply has ballooned to $72.5 billion, running 25% ahead of the firm’s 2025 forecasts. That puts Circle’s growth well above expectations and cements its place as the fastest-growing player in the stablecoin market.
USDC Growth Smashes Expectations
Bernstein analysts led by Gautam Chhugani highlighted that USDC’s market share versus rival Tether (USDT) has climbed to 30%, up from 28% just last quarter. Stablecoins like USDC are critical to crypto markets—they power cross-border payments, trading pairs, and DeFi strategies. Circle’s supply explosion signals that more institutions and investors are choosing USDC for stability and liquidity.
Competition Is Rising — But Circle Stays Ahead
Even with rivals lining up, Circle’s grip looks strong. Hyperliquid, a major decentralized exchange, is preparing to launch its own stablecoin to reduce reliance on USDC. Still, Bernstein warns that bootstrapping liquidity in derivatives markets is no easy feat. With $5.5 billion in USDC already used as collateral on Hyperliquid, Circle’s position isn’t just dominant—it’s deeply embedded in trading infrastructure.
Why Wall Street Remains Bullish on Circle
Some skeptics point to Circle’s exposure to rate cuts, since lower interest income could weigh on revenues. But Bernstein says that misses the bigger picture: expanding supply is the real growth engine. In fact, rate cuts could spark more risk-on sentiment, pushing capital into crypto and fueling USDC adoption. The brokerage has placed an outperform rating on Circle shares with a $230 target, nearly double the current $116 price.
A Stablecoin Power Shift in the Making?
With the GENIUS Act paving the way for new stablecoin entrants, competition is inevitable. But for now, USDC’s rapid growth has given Circle a decisive edge. Its blend of deep liquidity, regulatory credibility, and institutional adoption is pushing it further into the financial mainstream. If Bernstein is right, Circle’s dominance may just be getting started.
