The supply of the dollar-pegged stablecoin USDC has climbed sharply to $72.5 billion, a level Bernstein says is roughly 25% ahead of its prior 2025 estimates. Analysts at the Wall Street brokerage described USDC’s expansion as “on a tear,” noting the token’s growing role across crypto markets.
USDC’s market share relative to Tether’s USDT has also increased, rising to 30% from 28% in the second quarter, according to Bernstein. That shift underscores continued appetite for dollar-linked tokens as trading and settlement rails in decentralized finance and exchanges.
Competition is emerging: decentralized exchange Hyperliquid is planning to launch a proprietary stablecoin, and roughly $5.5 billion of USDC (about 7.5% of total supply) is currently posted as collateral on the platform. Bernstein cautions that while new entrants are likely after the GENIUS Act, building reliable liquidity in derivatives markets is challenging — a key friction point for alternatives.
The broker also weighed macro implications. Concerns that rate cuts could squeeze Circle’s interest income overlook a larger dynamic: a rising USDC supply can boost fee and product opportunities tied to the token. Lower rates might even fuel risk-on flows that lift demand for USDC and yield strategies.
Bernstein maintains an outperform rating on Circle with a $230 price target; the stock was trading near $116 at the time of the report. For market participants, the takeaway is that stablecoin growth remains a central force shaping liquidity and trading behavior across crypto.
Source: CoinDesk. Read the original coverage for full details.
