Circle’s USDC Supply Soars as Market Share Expands Amid Hyperliquid Competition
8/9/2025
Circle’s USDC stablecoin continues to surge, with total supply climbing to $72.5 billion—25% ahead of Wall Street broker Bernstein’s 2025 forecast of $74 billion by year-end.
The growth comes as Hyperliquid announces plans to launch its own stablecoin, a move that could reduce the DEX’s reliance on USDC. Despite this looming competition, USDC’s market share has grown to 30% from 28% in the second quarter, highlighting its expanding dominance in the stablecoin market, Bernstein analysts led by Gautam Chhugani noted.
Stablecoins, which are pegged to assets like the U.S. dollar, play a crucial role in crypto markets, supporting payments, trading, and cross-border transfers. Currently, $5.5 billion of USDC—around 7.5% of total supply—is used as collateral on Hyperliquid. Analysts caution that while new entrants may pose competitive pressure, establishing adequate liquidity for derivatives remains a significant challenge.
Bernstein also noted that concerns about Circle’s exposure to potential rate cuts may be overstated. The firm’s growing USDC supply positions it to benefit from increased activity in digital assets, with rate cuts potentially further supporting risk-on sentiment and demand for USDC.
The broker maintains an outperform rating on Circle shares, with a $230 price target. At the time of publication, Circle stock was trading 1.2% higher, near $116.
