Circle's stock price hit $90 as analysts are optimistic about the diversified growth of its stablecoin business.

Shares of stablecoin issuer Circle rose to above $90, a new high since November last year, before falling back to around $87. This followed the company's fourth-quarter results, which exceeded market expectations, driving the stock price up by approximately 30% after the earnings release. Bernstein analysts maintained their "outperform" rating on Circle and gave it a $190 price target, believing that the company's performance shows a growth trend that is "clearly different from the crypto market." The report points out that Circle's expansion in the infrastructure sector is generating new revenue streams with higher profit margins, rather than relying solely on stablecoin reserve returns. Analysts stated that Circle's transaction-related revenue continues to grow, including blockchain rewards earned as a supervalidator on the Canton network. Meanwhile, the proportion of USDC directly custodied on the Circle platform has risen to 17% of the total supply, up from 14% in the previous quarter. The company anticipates that USDC circulation will continue to grow at an annual rate of approximately 40%, and expects revenue from other businesses besides reserve income to reach approximately $170 million in 2026, up from approximately $110 million in 2025. Bernstein is also optimistic about Circle's expansion into new product areas, including the Arc platform, Circle Payments Network, and "automated payment" capabilities for AI agents. Meanwhile, Mizuho analysts point out that as stablecoins are increasingly used in new scenarios such as prediction markets and the Polymarket platform, Circle's revenue structure is expected to become more diversified. Overall, market attention is gradually shifting towards whether Circle can establish a more balanced revenue stream structure during the expansion of the stablecoin ecosystem.