Woofun AI reports that Bernstein has maintained an Outperform rating on Circle, anchoring its bullish thesis on the emergence of a new growth cycle for the USDC stablecoin. The firm argues that this resurgence, characterized by what it terms "digital dollar reflation," positions the issuer for significant value creation over the next 12 months.

The catalyst for this optimism is a sharp reversal in USDC supply dynamics, which expanded by roughly $2 billion in just seven days, ending a six-month stretch of stagnant or declining growth. This momentum coincides with Circle shares rising roughly 40% over the past month, while the $140 price target implies approximately 60% upside from current levels as of Monday's note.

Structurally, USDC is gaining ground against Tether's USDt in transaction activity, with its share of adjusted stablecoin transaction volume climbing from roughly 40% in 2025 to more than 60% so far in 2026. This operational shift contrasts with the stock's volatility since its June 2025 IPO, where shares priced at $31 and raised roughly $1.1 billion had fallen back toward their debut price by November 2025 amid broader crypto market headwinds.

Per Woofun AI, Circle's recent financial results show $701 million in revenue and $48 million in net income, both up from a year earlier. Future adoption is expected to be driven by artificial intelligence agents, tokenized capital markets, and greater regulatory clarity in the United States.