JPMorgan: Hyperliquid Partnership Will Put Short-Term Pressure on Circle and Coinbase Revenue

Odaily Odaily reports that JPMorgan stated the new partnership arrangement with Hyperliquid will create short-term revenue headwinds for Circle and Coinbase, posing a greater long-term threat to Circle's USDC economic model. The bank believes the deal exposes a "prisoner's dilemma," prompting Circle and Coinbase to compete for USDC distribution at the expense of each other's economic interests. JPMorgan has lowered its earnings expectations for both companies, citing changes related to Hyperliquid, weakening cryptocurrency trading volumes, and falling asset prices. (CoinDesk).