Bitwise sees Circle worth $75 billion by 2030 as analysts defend stock after selloff

Circle shares dropped about 20% following reports that draft provisions in the Clarity Act could limit incentives for holding USDC, sparking concerns about the stablecoin issuer's growth. However, Bitwise Chief Investment Officer Matt Hougan dismissed the reaction as "overblown," citing a base case projection that the total stablecoin market could reach $1.9 trillion by 2030, a forecast unaffected by the legislative news. Hougan argued that interest income is not the primary driver of stablecoin growth and expressed confidence that Circle, as an innovator, can protect its early market lead against future competition from large financial firms. Analysts at William Blair also defended Circle, suggesting the Clarity Act uncertainty would not materially harm long-term prospects, noting that USDC's benefits to cross-border commerce outweigh legislative ambiguity. Furthermore, Bernstein analysts suggested limiting stablecoin payouts might actually strengthen Circle by reducing aggressive yield competition from rivals, while noting that competitor Tether faces significant hurdles for U.S. compliance.

(Source：The Block)