Analyst predicts 60% upside for Circle stock

Analysts at the research and brokerage firm Bernstein reiterated a price target of $140 for the Circle Internet Group (NYSE: CRCL) stock and maintained an Outperform rating, The Block reported on Aug. 24.

Circle is a cryptocurrency company that is best known for its USDC stablecoin. Pegged 1:1 to the U.S. dollar, USDC is the second-largest stablecoin after Tether's USDT.

Related: Explained: What is a stablecoin?

Why Bernstein analysts expect Circle to grow

Bernstein analysts, led by Gautam Chhugani, said that Circle's growth can continue even if the CLARITY Act doesn't pass in September.

Stablecoin payments, blockchain-based capital markets, tokenized assets, and agent payments are the demand points due to which the analysts are optimistic about the company's growth potential.

In addition, Bitcoin has benefited from fresh demand for "hard assets" and stablecoins have absorbed demand for U.S. dollars as the Treasury issues more short-term debt, they underlined.

The analysts pointed to the USDC stablecoin adding approximately $1.7 billion to its supply over the past week after nearly six months of staying flat.

USDC is used as collateral across decentralized finance, tokenized equities, real-world-asset perpetual futures, and prediction markets, they underscored.

Circle holds around 80% of decentralized exchange trading and finance volumes, the note read. The company's Agent Stack is now home to more than 900 paid services since its launch in May, with 99% of x402 agent-payment volume settling in USDC, it added.

The analysts also noted that stablecoin activity outside speculative trading is also growing.

Adjusted stablecoin transaction volume, excluding bots and high-frequency activity, hit nearly $11 trillion during 2025 and is growing at an annualized rate of roughly $17 trillion through July 2026, per Bernstein. The growth rate is 60% higher than a year earlier.

"We believe, this growth cycle is independent of the Clarity Act passing in the September session," Bernstein analysts wrote.

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Impact of CLARITY Act's passage on Circle's growth

The CLARITY Act is the most comprehensive legislation to regulate digital assets in the U.S., which aims to designate distinct responsibilities to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).