Circle's Strategic Moves Poised to Strengthen Stablecoin Market Leadership

According to PANews, Wall Street brokerage Bernstein has released an analyst report suggesting that Circle is well-positioned to dominate the stablecoin market in the long term. This is attributed to its liquidity, regulatory advantages, and payment infrastructure. The report maintains a stock target price of $230 for Circle, indicating a potential 40% increase from its current level. Analysts anticipate that the third quarter will be a crucial period for observation. Recently, Circle announced plans to launch a Layer 1 blockchain focused on stablecoins, named Arc. The testnet for Arc is expected to go live this fall. Arc will utilize USDC as its native gas, offering features such as a stablecoin forex engine, rapid settlement, and optional privacy functions. Circle's second-quarter financial report reveals a 90% year-over-year increase in USDC circulation, reaching $61.3 billion, and further rising to $65.2 billion by August 10. Total revenue and reserve income grew by 53% year-over-year to $658 million. However, due to expenses related to its IPO, the company reported a net loss of $482 million.