USDC Supply Increases by $1.7 Billion in One Week: 59% Upside Potential for Circle Shares
USDC supply increased by $1.7 billion in one week following six months of sideways movement, while it was noted that Circle could grow independently of the Clarity Act, with a 59% upside potential for its shares.
According to a Bernstein note reported by The Block, Circle shares (ticker: CRCL) rose more than 5% on Friday to close at $87.98. The firm maintained its $140 price target and buy rating. This target indicates a 59% upside potential relative to the closing price. The price target reflects analyst expectations and offers no guarantee of realization.
The note stated that Circle’s growth will be supported by stablecoin payments, the representation of real-world assets on the blockchain, and automated payments by software agents. The outcome of the Clarity Act, which aims to clarify crypto and stablecoin regulations in the U.S., will not change this growth thesis.
September 15 Vote Could Impact USDC Reward Model
The September 15 vote will be watched more for its impact on the reward model and regulatory pressure than for Circle’s growth. If the Senate does not support the bill, third-party stablecoin rewards will remain under the current model. If the law passes, rewards will be linked to user activity instead of idle balances. While both scenarios are seen as positive for USDC, it was stated that if the bill is rejected, SEC and CFTC intervention could accelerate.
Excluding bots and high-frequency trading, stablecoin transaction volume reached $11 trillion in 2025. As of July, volume reached an annualized level of $17 trillion, growing 60% annually. Circle’s share in decentralized exchange and finance volumes was given as approximately 80%. In the Agent Stack launched in May, there are more than 900 paid services, while 99% of automated payments made via x402 resulted in USDC.
Bernstein has had investment banking and other commercial relationships with Circle over the past 12 months. The note also mentioned that analyst Gautam Chhugani holds long positions in various cryptocurrencies.