Bernstein is calling for a new growth phase for USDC, setting a price target of $140 for Circle, the company behind the stablecoin. The call comes as USDC supply jumped by roughly $2 billion in just seven days, a sign that demand is picking up.
What's driving the supply surge
The recent increase in USDC's supply isn't a blip, according to Bernstein. The firm points to higher transaction activity on-chain and across exchanges as a key factor pushing more USDC into circulation. That activity has accelerated in the past week, lifting the stablecoin's total supply by about $2 billion.
Beyond transaction volumes
Bernstein also cites several other factors that could support further growth, though the firm hasn't detailed them in the materials available. The combination of these drivers, along with the current supply momentum, underpins the $140 price target for Circle.
The new target suggests Bernstein believes Circle's valuation has room to run if the stablecoin market keeps expanding. For now, the focus stays on whether the supply uptick is the start of a longer cycle or just a short-term bump.
What to watch next
Investors will be watching to see if USDC supply continues to climb over the next few weeks. If the trend holds, it could strengthen the case for Bernstein's price target. If it stalls, the market may need to wait for more clarity.
