Circle's Stock Price Hits $90, Analysts Bullish on Diversified Growth of Stablecoin Business

Odaily News Stablecoin issuer Circle's stock price once climbed above $90, hitting a new high since last November, before retreating to around $87. The company's previously released fourth-quarter results exceeded market expectations, driving the stock price to accumulate a gain of approximately 30% since the earnings report.

Bernstein analysts maintained their "Outperform" rating on Circle and set a price target of $190, believing the company's performance indicates a growth trend that is "clearly distinct from the crypto market." The report points out that Circle's expansion in the infrastructure sector is bringing new revenue streams with higher profit margins, rather than relying solely on stablecoin reserve income.

Analysts stated that Circle's transaction-related revenue continues to grow, including blockchain rewards earned as a super-validator on the Canton Network. Meanwhile, the proportion of USDC directly custodied on Circle's platform has risen to 17% of the total supply, up from 14% in the previous quarter. The company expects USDC circulation to maintain an annual growth rate of approximately 40% in the future and anticipates that other business revenues, excluding reserve income, will reach about $170 million in 2026, higher than the roughly $110 million expected for 2025.

Bernstein is also optimistic about Circle's expansion into new product areas, including the Arc platform, the Circle Payments Network, and "automated payment" capabilities for AI agents.

At the same time, Mizuho analysts noted that as stablecoins find increased application in new scenarios such as prediction markets, for example on the Polymarket platform, Circle's revenue structure is expected to become further diversified. Overall, market focus is gradually shifting towards whether Circle can establish a more balanced revenue source structure during the expansion of the stablecoin ecosystem.