Investment bank calls for a $140 target price—stablecoin giant set to take off
In its latest research report, Bernstein sets a $140 target price for Circle, citing that USDC is entering a new growth cycle.
The data really is impressive: the USDC supply increased by about $2 billion in just one week; on-chain transaction activity has clearly rebounded; and payment use cases are rolling out faster. Institutional customers are coming in one after another. The analyst believes this is not a short-lived rebound, but rather improving fundamentals. Payment companies, banks, and cross-border settlement providers are all integrating one after another. Stablecoins are shifting from an exchange tool to payment infrastructure.
More importantly, stablecoins are now the infrastructure of the entire crypto world—every exchange and every chain depends on them. Whoever controls stablecoins controls the lifeblood of the industry, which is why investment banks are willing to assign such a high valuation. After all, the business model for stablecoins is crystal clear: reserve assets earn interest, and the larger the issuance scale, the steadier the profits. It’s essentially a business of “collecting rent while lying down.”
From the industry landscape, the stablecoin war has moved into the second half. The back-alley playbook of attracting deposits with high interest from years ago is being phased out. Regulatory requirements for reserve transparency and public audits are strengthening, and the composition of reserves must be shown clearly. As compliance costs rise, smaller players naturally get eliminated, while leading companies capture the dividends. That’s a classic winner-takes-all dynamic. Add to that the U.S. legislative framework gradually becoming clearer, and the moat for compliant stablecoins will only deepen further.
My view: the stablecoin track is worth watching long term. It isn’t like meme coins that rely on emotion. Every chain, every transaction—there’s real demand. As long as U.S. dollar dominance hasn’t collapsed, the stablecoin narrative won’t end. What matters now is who is cleaner and who is more trusted. This battle is about patience—who can pass the regulatory exam will become the next era’s money-printing machine.
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