Hyperliquid is planning on Launch one’s own stablecoinin a step that may reduce decentralized exchange (Dex) USDC dependency of Circle.
Despite these fears, the USDC supply has risen to $ 72.5 billion, running 25% leading the 2025 estimate of Wall Street Bernstein. The firm predicts that the Stablecoin supply will reach $ 74 billion by the end of the year.
The Stablecoin market sharing is “On a Tear,” written by analysts led by Gautam Chhugani in a Tuesday report.
Tether -related market sharing, which provided the largest stablecoin USDT worldwide, also grew by 30%, from 28% to the second quarter, the broker said.
Stablecoins are cryptocurrencies that the value is tied to another owner, such as the US dollar or gold. They play a major role in cryptocurrency markets, giving other things a payment infrastructure, and are also used to transfer money around the world.
The report noted that $ 5.5 billion in USDC (about 7.5% of supply) is currently used as collateral in hyperliquid. As the exchange of exchanges introduces the competition, it will be a challenge to bootstrap enough liquidity for a new stablecoin in the derivatives market where the reliability and measuring of the implementation are critical, analysts written.
Bernstein said that followed by the Genius ActStablecoin’s new entrants are inevitable. However, bootstrapping of liquidity for derivatives does not matter.
Concerns about circle exposure to rate cuts (Since lower interest income may affect revenues) Miss the bigger picture, according to Bernsuin’s analysts, as the benefits of Stablecoin issuer from expanding the USDC supply.
Rate cuts can support risk-on sentiment on digital assets, releasing additional demand for the USDC and related yield techniques, the report added.
Bernstein has an outperform rating on Circle shares, with a target price of $ 230. The stock trades 1.2% higher, around $ 116, at the time of publication.
Read more: Circle Unveils Layer-1 Blockchain ARC, Report of $ 428 Million Loss of Q2
