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The Coin Rise 2025-08-13 19:00:52

Bernstein Analysts Says Circle Could Become Top Stablecoin Network

Analysts at Bernstein believe Circle, the company behind the popular digital currency USDC, is in a strong position to become the leading stablecoin network in the world. The market experts kept their price target for Circle’s NYSE-listed stock CRCL at $230, which is about 40% higher than the current price. The analysts said Circle’s strong liquidity, clear regulation, and focus on payment technology give it an advantage. This comes after Circle recently released its second-quarter financial results. Strong Position Despite Competition Bernstein’s team, led by Gautam Chhugani, said the most liquid and regulated stablecoin will win in the long run. They believe Circle’s USDC is that stablecoin. Some investors are concerned that Tether’s USDT could enter the U.S. market under President Trump’s newly signed GENIUS Act. However, Bernstein said that even if this happens, USDT would have to start from zero in the U.S. Circle, by contrast, already has strong banking relationships, partnerships with top payment providers, and growing adoption on major crypto exchanges. Meanwhile, big companies like JPMorgan, Bank of America, PayPal, and Robinhood have launched or are planning their stablecoins. Still, Bernstein believes Circle has an advantage. Navigating Rate Changes Under the Trump Administration Bernstein noted that if interest rates decline under the Trump administration, Circle could earn less income from its reserves. Analysts think any loss from lower interest rates will be balanced by higher demand for USDC, especially from the decentralized finance (DeFi) sector. Also, Circle is gaining more share on exchanges like Binance and keeping costs low, which should help profits. Furthermore, Bernstein analysts say the stablecoin issuer’s main goal is to reshape global payments using stablecoins. It is working with Coinbase, Binance, and OKX, and building new tools like Circle Gateway, the Payments Network, and the Arc blockchain. Arc, expected to launch in public testnet later this year, will use USDC for fees, which could boost the token’s use and revenue. Circle Reports Strong Growth Despite Q2 Net Loss In Q2, US61DC circulation rose 90% year-over-year, reaching $61.3 billion, and climbed further to $65.2 billion by August 10. Circle also increased the share of USDC held directly on its platform to 10%, up from 6% in Q1. This is positive for margins because there are no distribution costs. Circle’s total revenue grew 53% to reach $658 million. However, the company posted a net loss of $482 million, mostly from IPO-related non-cash charges. Looking ahead, Bernstein said the real test for Circle will be in Q3. Analysts expect growth in USDC and changes in the Ethereum price to be key factors. Circle’s stock rose 1.3% on Tuesday to $163.21 after the results, but fell 5.4% in early trading on Wednesday. Still, the analysts believe Circle’s strengths will help it become the dominant stablecoin network in the long term. The post Bernstein Analysts Says Circle Could Become Top Stablecoin Network appeared first on TheCoinrise.com .

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