USDC Supply Surges Past Expectations Despite Hyperliquid Stablecoin Plans
8/9/2025

Circle’s USDC continues its robust growth, reaching a supply of $72.5 billion—25% ahead of Wall Street broker Bernstein’s 2025 projections. Bernstein had anticipated USDC would hit $74 billion by the end of the year.

The decentralized exchange Hyperliquid is preparing to launch its own stablecoin, a move that could reduce its reliance on USDC. However, analysts note that USDC’s market share remains “on a tear,” with Circle capturing 30% of the stablecoin market, up from 28% in Q2, according to Bernstein’s Tuesday report led by Gautam Chhugani.

Stablecoins like USDC, pegged to assets such as the U.S. dollar, serve as critical infrastructure in crypto markets, facilitating payments and cross-border transfers. Currently, $5.5 billion of USDC—about 7.5% of total supply—is deployed as collateral on Hyperliquid. While new entrants create competition, establishing sufficient liquidity for a stablecoin in derivatives markets, where execution size and reliability are essential, remains a significant challenge.

Bernstein noted that the passage of the GENIUS Act will inevitably encourage new stablecoin offerings. Still, analysts caution that liquidity bootstrapping in derivatives markets is far from straightforward.

Concerns that interest rate cuts could negatively affect Circle’s revenues overlook the broader trend: expanding USDC supply continues to strengthen the issuer’s position. Lower rates could even drive “risk-on” sentiment in digital assets, boosting demand for USDC and yield-focused strategies.

Bernstein maintains an outperform rating on Circle, with a $230 price target. At publication, Circle shares were up 1.2%, trading near $116.