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

May 19th News, according to CoinDesk, a new agreement between Hyperliquid, Coinbase, and Circle for USDC allows the protocol to capture most of the reserve revenue generated by stablecoin deposits on the platform. Analysts suggest that as revenue shifts from trading activity to stablecoin balances, the protocol could create significant long-term buying pressure for the HYPE token. Compass Point estimates that the agreement could reduce the combined annual EBITDA of Circle and Coinbase by up to $80 million and warns that other DeFi protocols may also seek similar terms. Syncracy Capital co-founder Ryan Watkins believes the agreement fundamentally changes Hyperliquid's business model, enabling it to capture both trading fees and stablecoin yields. He estimates the agreement could generate approximately $135 million to $160 million in annual revenue for Hyperliquid, with yield sharing alone potentially bringing in $300 million to $500 million annually if USDC balances expand. Paul Howard, Senior Director at Wincent, stated that this could signal consolidation in the stablecoin market around major stablecoins with established distribution channels, leading to fewer stablecoins and conversion layers, simplifying capital flows and improving liquidity efficiency.