Stablecoin Wave, "AI Proxy Finance" Assists! Bernstein Optimistic About Circle's Stock Price Soaring Another 60%

Stablecoin USDC issuer Circle (NASDAQ: CRCL) has recently experienced a strong surge in its stock price, but the best may still be ahead. A recent report from research and brokerage firm Bernstein indicates that, benefiting from the continued expansion of stablecoin demand and the rise of emerging AI-powered financial applications, Circle’s stock price could potentially increase by another 60%.
Led by Gautam Chhugani, the analyst team has given Circle an “Outperform” rating with a target price of $190. Based on the current price of around $120, this suggests there is still about 60% upside potential for Circle.
It’s worth noting that, driven by impressive earnings reports and the subsequent short squeeze, Circle has surged over 100% in recent weeks, yet analysts remain bullish.
Circle Demonstrates an “Independent Market” Trend: Stablecoin Development Decoupled from Cryptocurrency Market Volatility
Bernstein’s positive outlook on Circle hinges on the core idea that: the cycle of stablecoins is increasingly diverging from the broader cryptocurrency market. Even during periods of market volatility, the adoption of stablecoins has remained resilient.
The report points out that last October, the cryptocurrency market experienced liquidity shocks, causing USDC supply to temporarily decline, but it has now rebounded strongly, approaching a peak of $78 billion — a new all-time high. In contrast, Bitcoin and the overall crypto market are still well below their historical highs. Additionally, even during the crypto bear market, the total market cap of global dollar stablecoins remains steady at around $270 billion.
On-chain trading activity is also accelerating rapidly. Data shows that, after adjustments, stablecoin trading volume has grown over 90% year-over-year, and the “transaction velocity” — a measure of how frequently tokens are exchanged — has increased, indicating that stablecoins are increasingly used beyond just crypto trading.
Bernstein analyzes that the biggest driver of this trend is the widespread adoption of stablecoin payments. Stablecoins are rapidly integrating with traditional credit card networks, becoming a daily payment tool. For example, payment giant Visa (NYSE: V) currently supports over 130 stablecoin-linked credit cards across 50 countries worldwide, with an annualized settlement volume of approximately $4.6 billion.
Meanwhile, Circle is actively expanding its “Circle Payments Network,” which allows institutional clients to use USDC for low-cost cross-border remittances and directly convert to local fiat currencies through partner banks. The report notes that this network has already attracted about 55 institutions, with annualized transaction volume reaching $5.7 billion earlier this year.
Preparing for the AI-Driven Proxy Finance Era
Looking ahead, Bernstein highlights a highly promising emerging theme — AI-powered “Proxy Finance.”
As autonomous AI agents frequently conduct transactions online, stablecoins are expected to become the underlying layer for small-value payments between machines, such as paying for API call fees or various automated service charges.