Circle’s USDC Market Share Surges Ahead of Wall Street Predictions
Circle’s USDC supply has reached $72.5 billion, exceeding Bernstein’s forecasts for 2025 by 25%.
What to know:
- Wall Street firm Bernstein has rated Circle stock as outperform with a price target of $230.
- Following the passage of the GENIUS Act, new entrants in the stablecoin market are expected.
- Hyperliquid plans to launch its own stablecoin, potentially reducing its reliance on Circle’s USDC.
Despite rising competition, USDC supply continues to prosper, highlighting its importance in the market. The report emphasizes that the supply could reach $74 billion by the end of this year. The market share of USDC is on the rise, reaching 30% relative to Tether’s USDT, a growth from 28% in the previous quarter.
Stablecoins, tied to assets like the US dollar, are pivotal in the cryptocurrency ecosystem, aiding in payment infrastructures and international money transfers.
Additionally, $5.5 billion in USDC is presently utilized as collateral on Hyperliquid, where launching a new stablecoin may prove challenging due to liquidity demands.
Bernstein notes that while concerns exist regarding Circle’s sensitivity to interest rate changes, the overall expansion of USDC supply positions it favorably in the market. The prospect of lowered rates could also enhance demand for USDC.
With an outperform rating on Circle, its stock showed a slight increase at the report’s time of publication.
