Circle shares rise 4% as Polymarket-driven USDC growth prompts analyst upgrade
Mizuho upgraded Circle stock to neutral from underperform due to significant USDC growth driven by the Polymarket prediction platform.Summary
Shares of Circle (CRCL) increased by 4% after Mizuho upgraded the stock to neutral from underperform, citing a surge in activity on the crypto prediction platform Polymarket as a key catalyst for USDC growth. Analyst Dan Dolev noted that Polymarket's annualized trading volumes are projected to reach around $50 billion, potentially boosting USDC's market cap by 25% or more. This growth led Dolev to raise revenue estimates for 2026 and 2027. Dolev highlighted that Polymarket attracts non-crypto-native users through event trading, creating incremental demand for USDC. However, the upgrade was not fully bullish; Dolev maintained a $77 price target, acknowledging offsetting factors like looming rate cuts, rising distribution costs, and competition from Tether (USDT) and other stablecoin issuers.
(Source：CoinDesk)