Crypto24 August, 20262 min read
Bernstein Keeps $140 Target on Circle Internet Group After USDC Supply Rises $2 Billion
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USDC supply rose about $2 billion in the last week. Bernstein maintains a $140 price target on Circle with Outperform.
8 outlets told this the same way.
Bernstein lifts Circle
Bernstein maintained an Outperform rating and a $140 price target on Circle Internet Group, saying USDC has entered a new growth cycle after its supply increased by about $2 billion in seven days. In a research note published Monday, Bernstein described the move as “digital dollar reflation” and tied the shift to higher on-chain transaction activity alongside renewed momentum in crypto markets and greater regulatory clarity in the United States.
Circle shares have climbed about 40% over the past month, and Bernstein said USDC’s share of the stablecoin market by adjusted trading volume rose from about 40% in 2025 to more than 60% in 2026, surpassing USDt. Bernstein also pointed to early signs that stablecoins are being used as a payment method for artificial intelligence agents, while noting USDC remains the second-largest dollar-pegged stablecoin by market capitalization behind Tether’s USDt (USDT).
CLARITY Act debate
Bernstein’s bullish case for Circle does not depend on Congress passing the CLARITY Act, with analysts led by Gautam Chhugani arguing that the next USDC growth cycle can continue even if the bill fails to pass in September. FinanceFeeds framed the counterpoint by citing Mizuho’s view that regulatory clarity could become a problem for Circle by opening stablecoins to larger competitors and compressing the economics of USDC.
Stocktwits reported Chhugani’s argument that “We believe this growth cycle is in dependent of the Clarity Act passing in the September session,” and said the analysts tied the thesis to macro regime shift, real-world blockchain capital markets, stablecoin payments, and agentic payments. The same reporting said Bernstein estimated adjusted stablecoin transaction volume, excluding bots and high-frequency activity, is running at an annualized $17 trillion through July, compared with about $11 trillion during 2025.
Agent Stack and stakes
Bernstein’s thesis also leans on Circle’s Agent Stack, which the company said contains more than 900 paid services and where 99.3% of x402 agent-payment volume settles in USDC. FinanceFeeds reported that Circle’s Agent Stack now contains more than 900 paid services, while Circle’s own numbers showed 99.3% settlement share with its Q2 results earlier this month.
The Blockonomi report added that Circle delivered second-quarter revenue of $701 million and net income of $48 million, and it said USDC supply expanded by approximately $1.7 billion within seven days after about six months of minimal change. In the same coverage, Bernstein highlighted that if the CLARITY Act fails to pass on September 15, the SEC and CFTC would likely issue regulatory guidance rather than creating operational obstacles for Circle, while Susquehanna cautioned that “more competitors are showing up.”