USDC Under Siege? JPMorgan Warns Hyperliquid’s Rise Threatens Circle’s Profits

JPMorgan has issued a high-level warning regarding the economic stability of Circle's business model. The rapid expansion of Hyperliquid, bolstered by key deals with Circle and Coinbase, is triggering a 'prisoner's dilemma' that puts significant pressure on the earnings generated by the USDC stablecoin.
This development highlights a growing tension between centralized stablecoin issuers and decentralized liquidity protocols. As Hyperliquid gains traction, the traditional revenue streams of the dollar-pegged USDC face potential disruption, reshaping the competitive landscape of the entire digital asset market.
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