Stablecoins may be quietly breaking away from the typical crypto boom-and-bust cycle.
Bernstein analysts think that this would benefit one of the most oversubscribed IPO stocks of 2025.
In a recent research note, the investment firm raised its price target for Circle Internet Financial (NYSE: CRCL), the company behind the USDC stablecoin, pointing to a sharp rise in stablecoin adoption across payments, businesses, and even potential AI-driven use cases.
A stablecoin is a cryptocurrency designed to maintain a stable value by being pegged to assets like the U.S. dollar, enabling fast digital payments, trading liquidity, and cross-border transfers with reduced price volatility.
The analysts argue that stablecoins are increasingly functioning less like speculative crypto assets and more like the plumbing of the digital economy.
Related: Circle announces new blockchain amid blockbuster earnings
Circle’s public debut in June 2025 quickly turned into one of the most talked-about IPOs in the market.
Demand for the offering was enormous.
The IPO was oversubscribed more than 25 times. This pushed Circle to increase the deal size to 32 million shares. The listing valued the company at nearly $7 billion.
When trading began, shares opened 124% above the IPO price.
At press time, as of March 10, Circle shares were trading around $112.89 in pre-market trading, up roughly 0.8%. The stock had jumped 9.74% the previous day and has gained about 41% year to date.
Over the past year, returns have climbed roughly 62%.
Bernstein’s report pointed out how stablecoins appear to be decoupling from the broader crypto market cycle, TheBlock reported.
For example, USDC supply briefly dipped after a liquidity event and broader crypto correction in October. Since then, however, it has rebounded strongly to around $78 billion in circulation, as per CoinMarketCap, reaching fresh highs even while Bitcoin remains well below its previous peak.
Tether’s USDT, meanwhile, has continued growing and now sits at roughly $183 billion in supply.
To Bernstein, that resilience signals something bigger than just trading activity.
The analysts also said the sector is increasingly acting as “global digital dollar banking” infrastructure.
Related: Stablecoin adoption accelerates as businesses embrace real-time transactions
Another key theme in Bernstein’s analysis is that stablecoin usage is shifting heavily toward payments rather than trading.
