USDC supply rises $1.7 billion as Circle growth projections increase

The supply of the USDC stablecoin increased by $1.7 billion in a single week following a six-month period of stagnation. According to a note from Bernstein, Circle's stock (CRCL) has a potential upside of 59%, with a target price of $140 following a recent 5% rise to close at $87.98.

Growth for Circle is expected to be driven by stablecoin payments, the representation of real-world assets on the blockchain, and automated payments via software agents. While the outcome of the Clarity Act in the US may influence reward models for stablecoins, analysts suggest it will not fundamentally alter the company's growth thesis.

In the broader crypto market, spot trading volume on centralized exchanges (CEX) doubled over a five-day period, exceeding $37 billion. Despite this recent rally, total August volumes remain below July levels. This divergence is attributed to the rise of spot ETFs and decentralized exchanges (DEX), which divert a portion of market demand away from traditional centralized platforms.