Circle’s USDC Supply Surges, Market Share Climbs Amid Hyperliquid Competition
8/9/2025
Circle’s USDC stablecoin continues to gain momentum, with its total supply hitting $72.5 billion—25% above Wall Street broker Bernstein’s 2025 forecast. Bernstein had projected a year-end supply of $74 billion.
The growth comes as Hyperliquid prepares to launch its own stablecoin, potentially reducing its reliance on USDC for trading and collateral. Despite this looming competition, USDC’s market share has risen to 30% from 28% in Q2, underscoring the token’s expanding dominance in the stablecoin sector, according to Bernstein analysts led by Gautam Chhugani.
Stablecoins, pegged to assets such as the U.S. dollar, remain a critical infrastructure in cryptocurrency markets, supporting payments, trading, and cross-border transfers. Currently, $5.5 billion of USDC—roughly 7.5% of total supply—is used as collateral on Hyperliquid. Analysts note that while new entrants could disrupt the market, establishing sufficient liquidity for derivatives and execution-heavy products remains a challenge.
Bernstein also highlighted that concerns over Circle’s exposure to interest rate cuts may be overblown. The firm’s expanding USDC supply positions it to benefit from rising digital asset activity, while potential rate cuts could further boost risk-on sentiment, driving additional demand for USDC and related yield strategies.
The broker maintains an outperform rating on Circle shares with a $230 price target. At publication, Circle stock was trading 1.2% higher, near $116.
