Analysts See 60% Upside for Circle as Stablecoins Break Free from Crypto Volatility

Shares of Circle Internet Financial, the company behind the USDC stablecoin, could surge another 60% to $190, according to a new report from brokerage firm Bernstein. This bullish forecast comes even after the stock more than doubled in recent weeks.

The analysts, led by Gautam Chhugani, argue that stablecoin adoption is fundamentally changing. They note that USDC's supply, now near a record $78 billion, has recovered strongly despite a broader crypto downturn. This suggests stablecoins are decoupling from the volatile cycles of digital assets like Bitcoin.

"We are witnessing a divergence," the report states. "Stablecoins are no longer just a trading tool. They are becoming a core piece of digital payment infrastructure." Data supports this: adjusted transaction volumes grew over 90% year-over-year, and the tokens are changing hands more frequently, indicating wider everyday use.

This payments shift is being driven by integration with traditional finance. Visa, for example, now supports over 130 stablecoin-linked cards globally, processing billions annually. Circle's own cross-border payments network, which converts USDC into local currency, is already handling nearly $6 billion a year for institutional clients.

Looking forward, Bernstein identifies a novel potential driver: autonomous software agents. As AI programs conduct more transactions online, stablecoins like USDC could become the standard for machine-to-machine micropayments. In anticipation, Circle is developing a new blockchain, Arc, specifically engineered for high-speed, low-cost transactions.

The report concludes that Circle's trajectory is increasingly tied to the practical adoption of digital dollars, a market showing robust growth independent of crypto speculation.

Source: CoinDesk