AltcoinsMarkets
|3 min ReadBernstein backs Circle growth, shrugs off Hyperliquid threat
Maya Chen
Senior Analyst
Published
Jan 16, 2026
Bernstein reaffirmed a $230 price target for Circle’s stock, CRCL. The analysts say Circle can sustain growth even as new stablecoins arrive. USDC remains the core engine. They see demand building, not fading.
They addressed fresh chatter around Hyperliquid. The debate is simple. If Hyperliquid launches a native stablecoin for its HyperEVM, does USDC lose share on the exchange. Bernstein says any effect would be gradual. Nearly 7.5 percent of total USDC supply is used as collateral on Hyperliquid’s perpetual futures platform. That is sticky behavior. It does not vanish overnight.
Hyperliquid stablecoin talk and the timeline
Hyperliquid announced an auction for stablecoin tickers on HyperEVM. The community now expects a USDH launch. Stablecoin issuers Paxos, Frax Finance, and Agora, plus a new team called Native Markets, have shown interest in issuing USDH. The announcement landed Friday in a Discord post. That draws attention. It does not create instant depth.
Bernstein’s note explains why. “Bootstrapping liquidity for new stablecoins is non-trivial and especially for crypto capital market products such as futures, where position sizing and execution efficacy matters.” They also say Hyperliquid could add more partners, including Paxos, to build resiliency. But building futures liquidity is a step-by-step process.
Circle’s leadership pushed back on the fear. Over the weekend, co-founder and CEO Jeremy Allaire reposted July’s plan to deploy USDC on HyperEVM. “Don’t Believe the Hype,” he posted to X. “We are coming to the HYPE ecosystem in a big way. We intend to be a major player and contributor to the ecosystem.”
What it means for Circle and USDC right now
Bernstein sees fresh tailwinds. If the rate-cut cycle begins, risk appetite should improve. That drives more USDC demand and on-chain yield demand. Payments and financial services integrations are early. Circle can keep expanding the USDC ecosystem.
They also say USDC gained ground on Tether. Market share sits near 30 percent today, up from 28 percent in Q2. The landscape grows more competitive as firms chase a market many expect to reach the trillions. New players like the Trump-backed World Liberty Financial are building demand for their USD-pegged tokens. Banks may enter too. Bank of America is poised to create its own stablecoin.
The takeaway is clear. USDC’s footprint is large on Hyperliquid today. A new stablecoin can arrive. Liquidity takes time to build. Circle is moving onto HyperEVM itself. The growth story stands while the market broadens around it.
Disclaimer: This document is intended for informational and entertainment purposes only. The views expressed in this document are not, and should not be taken as, investment advice or recommendations. Recipients should do their own due diligence, taking into account their specific financial circumstances, investment objectives and risk tolerance, which are not considered here, before investing. This document is not an offer, or the solicitation of an offer, to buy or sell any of the assets mentioned.