Shares of Circle (CRCL), the crypto firm behind the USDC (USDC) stablecoin, could add to their recent remarkable surge, according to analysts at brokerage Bernstein.

The team, led by Gautam Chhugani, rate the stock at outperform with a $190 price target, suggesting about 60% upside from current $120 level. And that's after the stock rallied more than 100% in the past few weeks following an earnings beat, which likely triggered a short squeeze.

Bernstein’s thesis centers on stablecoin adoption increasingly diverging from the broader crypto market.

Circle’s USDC supply briefly fell after the October liquidity shock in crypto markets but has since rebounded to just shy of its record $78 billion, even as bitcoin BTC$70,039.19 and the broader crypto markets remain well below its highs. The total market for U.S. dollar-backed stablecoins also remained steady at around $270 billion despite the crypto bear market, the report noted.

Transaction activity is accelerating as well, the report noted. Adjusted stablecoin volumes grew more than 90% year-over-year, while transaction velocity — a measure of how frequently tokens change hands — has increased, suggesting stablecoins are increasingly used beyond crypto trading.

Payments adoption is a key driver behind that, Bernstein said, as stablecoins are increasingly getting embedded with traditional card networks, enabling everyday transactions. Visa (V), for example, now supports more than 130 such stablecoin-linked cards across 50 countries, processing roughly $4.6 billion in annualized settlement volume, the report noted.

Circle is also expanding its Circle Payments Network, which allows institutions to send USDC cross-border and convert it into local currencies through banking partners. The network now includes about 55 institutions, with annualized volumes reaching $5.7 billion earlier this year, the report said.

Looking ahead, Bernstein also highlighted a potential new growth theme: AI-driven "agentic finance." As autonomous software agents increasingly transact online, stablecoins could become a natural payment rail for micropayments between machines, such as for API calls or automated services.

To support that vision, Circle is building a high-throughput, payments-focused blockchain called Arc, designed for fast, low-cost transactions.

Read more: Why Circle and Stripe (And Many Others) Are Launching Their Own Blockchains