Larry David Thinks USDC Is Winning the Stablecoin Game 🤷‍♂️

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Markets

What to know:

  • Wall Street brokerage firm Bernstein has an outperform rating on Circle stock with a $230 price target. I mean, who doesn’t love a good outperform? 🙃
  • USDC supply has increased to $72.5 billion, 25% ahead of Bernstein’s 2025 estimates. Like, what are they, psychic? 😂
  • Following the passage of the GENIUS Act, new stablecoin entrants are inevitable, the report said. Because we just needed more players in this already crowded market. 🙄

Hyperliquid is planning to launch its own stablecoin, in a move that could reduce the decentralized exchange’s (DEX) dependency on Circle’s USDC. Like, why not just stick with what works? But no, let’s reinvent the wheel. 🛠️

In spite of these fears, USDC supply has surged to $72.5 billion, running 25% ahead of Wall Street broker Bernstein’s 2025 estimates. The firm had predicted that the stablecoin’s supply would reach $74 billion by year-end. I guess they’re off by a few billion. Big deal. 🤷‍♂️

The stablecoin’s market share is “on a tear,” wrote analysts led by Gautam Chhugani in a Tuesday report. Yeah, because nothing says success like being on a tear. 🏆

Market share relative to Tether, issuer of the world’s largest stablecoin USDT, has also grown to 30%, up from 28% in the second quarter, the broker said. I mean, if you can’t beat them, just take a little bit of their market share. 😎

Stablecoins are cryptocurrencies whose value is tied to another asset, such as the U.S. dollar or gold. They play a major role in cryptocurrency markets, providing among other things a payment infrastructure, and are also used to transfer money internationally. Because who needs banks when you have crypto? 🏦

The report noted that $5.5 billion in USDC (about 7.5% of supply) is currently used as collateral on Hyperliquid. While the exchange’s move introduces competition, it will be challenging to bootstrap sufficient liquidity for a new stablecoin in derivatives markets where execution reliability and sizing are critical, the analysts wrote. It’s like trying to start a new restaurant in a city full of Michelin-starred chefs. Good luck with that. 🍽️

Bernstein said that following the GENIUS Act, new stablecoin entrants are inevitable. However, liquidity bootstrapping for derivatives is non-trivial. Translation: It’s gonna be tough. 💪

Concerns about Circle’s exposure to rate cuts (since lower interest income could impact revenues) miss the bigger picture, according to Bernstein analysts, as the stablecoin issuer benefits from expanding USDC supply. Like, who cares about a little interest income when you’ve got a growing empire? 🏰

Rate cuts could even support risk-on sentiment in digital assets, spurring further demand for USDC and related yield strategies, the report added. So, lower rates might actually help. Who knew? 🤔

Bernstein has an outperform rating on Circle shares, with a $230 price target. The stock was trading 1.2% higher, around $116, at publication time. I guess the market agrees with me. Or maybe they just like the name Circle. 🔄

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2025-09-08 22:20