TLDR

Bernstein analysts remain confident in Circle’s growth with a $230 stock target.
New Hyperliquid stablecoin may compete, but it won’t disrupt USDC’s market share quickly.
USDC’s supply is 25% ahead of Bernstein’s 2025 estimate, signaling growth.
Circle’s market share against Tether is increasing, now at 30%, up from 28%.

Bernstein analysts have reaffirmed their $230 price target for Circle’s stock (ticker: CRCL) and remain confident in the company’s continued growth. The stablecoin issuer, best known for its USDC coin, has been facing increasing competition, notably from Hyperliquid, which is planning to launch its own stablecoin. Bernstein remains undeterred by these developments, stating that while competition will intensify, it won’t significantly disrupt USDC’s dominance in the near term.

The concern arises from the introduction of Hyperliquid’s USDH stablecoin, which could potentially draw some activity away from USDC. Analysts have noted that Hyperliquid’s decentralized exchange (DEX) could see reduced reliance on USDC as collateral, particularly since approximately 7.5% of the total USDC supply is currently used as collateral on Hyperliquid’s perpetual futures platform. Despite this, Bernstein believes that any impact will be gradual, as it takes time to establish liquidity for a new stablecoin, especially in high-stakes derivatives markets like futures.

USDC’s Strong Market Position and Future Prospects

Bernstein’s analysts have a positive outlook on Circle’s future, largely due to the growing demand for stablecoins. USDC has proven to be a key player in the crypto ecosystem, particularly in financial services and payment integration. Bernstein analysts highlight the increase in market share for USDC, which now holds 30% of the stablecoin market, up from 28% in the second quarter of 2025. This growth comes despite competition from other issuers, such as Tether (USDT), the world’s largest stablecoin by supply.

Bernstein attributes part of this growth to Circle’s expanding financial ecosystem and the increasing use of USDC for on-chain yield generation. Furthermore, with the potential for rate cuts in the U.S., analysts expect a “risk-on” environment that will spur demand for USDC and other digital assets.

As global financial services increasingly look to stablecoins for cross-border payments and digital finance, Circle stands well-positioned to capture a larger share of this rapidly growing market.

Hyperliquid’s Stablecoin and Its Potential Impact

The introduction of Hyperliquid’s USDH stablecoin has raised questions about USDC’s future, particularly in decentralized finance (DeFi) ecosystems like Hyperliquid’s exchange. While Bernstein acknowledges that the emergence of Hyperliquid and other stablecoin competitors will create a more dynamic environment, they note that building liquidity for a new stablecoin is a difficult and time-consuming process. This is especially true in markets where execution reliability and transaction sizing are crucial.

“Bootstrapping liquidity for new stablecoins is non-trivial and especially for crypto capital market products such as futures,” the analysts said in their report.

Bernstein emphasized that even if Hyperliquid were to partner with stablecoin issuers like Paxos to strengthen its platform, the process of growing liquidity will take time. As a result, they believe that any significant reduction in USDC activity on Hyperliquid will be slow.

Circle’s Continued Growth Amid Competitive Landscape

Despite the rise of competition, Circle continues to maintain a strong market presence. Analysts pointed to USDC’s expanding supply, which has already surpassed Bernstein’s projections for 2025. USDC’s current supply of $72.5 billion is 25% ahead of the broker’s estimates, with the stablecoin on track to reach $74 billion by the end of the year. This growth is supported by the increasing demand for USDC across various sectors, from payments to decentralized finance applications.

Circle’s CEO, Jeremy Allaire, has expressed confidence in USDC’s continued growth, noting that the company is expanding its presence in emerging ecosystems like HyperEVM. In a recent post, Allaire reassured the community, stating, “Don’t Believe the Hype. We are coming to the HYPE ecosystem in a big way.”

In light of these developments, Bernstein has maintained an “outperform” rating for Circle’s stock, with a $230 price target. At the time of publication, Circle’s stock was trading at approximately $116, marking a 1.2% increase. The analysts remain confident that Circle’s diversified ecosystem, along with the growing demand for USDC, will provide the company with sustained growth and stability. Despite the competition posed by new entrants like Hyperliquid, the long-term prospects for Circle and USDC remain positive, according to Bernstein’s analysts.

The post Bernstein Bullish on Circle’s Future Growth, Brushes Off Hyperliquid Concerns appeared first on CoinCentral.

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Filed under: News - @ September 9, 2025 12:29 am