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

Odaily Odaily reports that JPMorgan stated that Hyperliquid's new partnership arrangement will create short-term revenue headwinds for Circle and Coinbase, while 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 earnings forecasts for both companies, citing factors including changes related to Hyperliquid, weakening cryptocurrency trading volumes, and declining asset prices. (CoinDesk).