Circle's USDC has overtaken Tether's USDT in transaction volumes for the first time since 2019, leading Japanese investment bank Mizuho to raise its price target for Circle to $120 from $100. The shares saw a 1% rise in early trading.
Analysts attribute the surge to "USDC activity trends and use cases." Stablecoins are crucial for crypto payments and transfers, with Tether's USDT currently holding a larger market cap, but USDC's adjusted transaction volume has significantly increased. Mizuho forecasts a rise in "meaningful wallets" and USDC market capitalization.
While some suggest recent stock gains are due to short squeezes, others point to USDC's resilience, Circle's economic model, and leadership in stablecoin infrastructure as key drivers.