JPMorgan cuts Circle and Coinbase earnings forecasts as the Hyperliquid deal weakens USDC revenue economics for both firms.

Hyperliquid's deal with Circle and Coinbase creates a "prisoner's dilemma" that puts pressure on earnings from the dollar-pegged stablecoin.

JPMorgan warns that HyperliquidX's growth could threaten Circle's USDC model. HyperliquidX reaching $100 by December 31, 2026 is at 31% YES.