Bernstein Reiterates $230 Target as Circle Faces USDH Challenge

- Bernstein analysts express confidence in Circle's resilience amid upcoming stablecoin competition. - Hyperliquid's USDH expected to pose gradual challenges due to liquidity constraints. Bernstein analysts reaffirmed their $230 price target for Circle's stock (CRCL), expressing confidence that the USDC stablecoin issuer can sustain growth despite new competition from Hyperliquid's planned USDH stablecoin. On September 8, 2025, The Block reported that the analysts suggest Hyperliquid’s entry into the market will unfold slowly, as they believe liquidity hurdles will pose a significant challenge for the new competitor. The report highlights the interconnected dynamics between the two entities, noting that roughly 7.5% of the total USDC supply is currently used as collateral on Hyperliquid's perpetual futures platform. In addition, Circle’s co-founder and CEO, Jeremy Allaire, confirmed plans to expand USDC operations onto Hyperliquid’s new Layer 1 blockchain, HyperEVM, stating the company's intent to be a "major player and contributor to the ecosystem" and signaling its goal to solidify its foothold. Other stablecoin issuers, including Paxos, Frax Finance, and Agora, have also shown interest in Hyperliquid’s USDH stablecoin. However, broader macroeconomic factors support Bernstein’s bullish outlook on Circle. Analysts point to a potential shift to a “risk-on” market environment driven by anticipated interest rate cuts, which could boost demand for USDC. At the same time, Circle continues to grow its market share, which rose from 28% in the second quarter to 30% relative to Tether's USDT. According to CoinMarketCap, USDC was trading at $1.00 as of 18:09 UTC on September 8, reflecting a marginal -0.005% change in the last 24 hours. Meanwhile, Hyperliquid’s native token (HYPE) was trading at $50.53 as of 18:08 UTC, with its 24-hour trading volume increasing by 7.509%, showcasing heightened activity around the project.