Jefferies warns investors not to buy the dip as Circle shares fall, as Open USD brings new competitive pressure

CoinFeed July 2 news, according to CoinDesk report, the establishment of the Open USD stablecoin alliance has raised market concerns about competitive pressure on Circle. Circle shares plummeted 17% on Tuesday and rebounded 5% on Wednesday. Jefferies analysts believe Circle's approximately 25% stablecoin market share is under pressure, advising investors not to buy the dip, citing that the new alliance has over 140 enterprise backers, significant distribution network advantages, and that Circle's largest distribution partner Coinbase is also in it, with the commercial agreement between the two reportedly up for renewal in August, which may further impact USDC's growth prospects. Circle CEO Jeremy Allaire responded that stablecoins are a network business built over many years, and USDC's integration scale, liquidity, and regulatory approvals cannot be quickly replicated.