Analysts: Hyperliquid's USDC partnership agreement may boost HYPE's price and squeeze the profits of Circle and Coinbase.

CoinFeed reported on May 19th that, according to CoinDesk, Hyperliquid's new USDC agreement with Coinbase and Circle allows the protocol to capture the majority of reserve revenue generated from stablecoin deposits on the platform. Analysts say that as revenue shifts from trading activity to stablecoin balances, the agreement could create significant long-term buying pressure on the HYPE token. Compass Point estimates that the agreement could reduce Circle and Coinbase's combined annual EBITDA by up to $80 million and warns that other DeFi protocols may also require similar terms.