Circle's stock price reaches $90, analysts optimistic about diversified growth in stablecoin business

According to Odaily, stablecoin issuer Circle's stock price once rose above $90, reaching a new high since last November, before retreating to around $87. Previously, the company's fourth-quarter results exceeded market expectations, driving the stock price up by about 30% cumulatively after the earnings report was released.

Bernstein analysts maintained their "outperform" rating on Circle and set a target price of $190, believing that the company's performance demonstrates a "distinct growth trend compared to the crypto market." The report pointed out that Circle's expansion in the infrastructure sector is bringing in new sources of higher-margin revenue, rather than relying solely on stablecoin reserve income.

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

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

Meanwhile, Mizuho analysts pointed out that as stablecoins are increasingly used in new scenarios such as prediction markets, for example on the Polymarket platform, Circle's revenue structure is expected to further diversify. Overall, the market's focus is gradually shifting to whether Circle can establish a more balanced revenue structure as the stablecoin ecosystem expands.