Hyperliquid plans to launch its own stableecoin, in one step that can reduce the decentralized exchange (Dex) Dependence on Circle’s USDC.
Despite these fears, the USDC supply has risen to $ 72.5 billion, running 25% ahead of Wall Street broker Bernstein’s estimates from 2025. The company had predicted that StableCein’s supply would reach $ 74 billion at the end of the year.
Stableecoin’s market share is “on a tear,” analysts wrote by Gautam Chhugani wrote in a Tuesday report.
Market share compared to Tether, issuer of the world’s largest stableecoin USDT, has also grown to 30%, up from 28% in the second quarter, the broker said.
Stableecoins are cryptocurrencies whose value is bound to another asset, such as the US dollar or gold. They play an important role in cryptocurrency markets that provide a payment infrastructure and are also used to transfer money internationally.
The report noted that $ 5.5 billion in USDC (about 7.5% of supply) is currently used as security on hyperliquid. While Exchange’s relocation is introducing competition, it will be challenging to bootstrap adequate liquidity for a new stableecoin in derivatives markets where execution reliability and size are critical, the analysts wrote.
Bernstein said the new stableecoin participants under the genius law are inevitable. However, liquidity stopping for derivatives is non-trivial.
Concerns for the Circle’s exposure to speed cuts (Since lower interest income could affect the revenue) Miss The bigger image, according to Bernstein analysts, as StableCOin empowerer benefits from expanding the USDC supply.
Rates cuts could even support the risk-in-mood in digital assets, which encourages further demand for USDC and related yield strategies, the report added.
Bernstein has a better classification on Circle shares with a price target of $ 230. The share traded 1.2% higher, around $ 116, at the time of announcement.
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