Will Hyperliquid USDH Put an End to Circle and USDC? CIRCL Stock Falls Sharply
The issuance of stablecoins represents a highly profitable venture, and in 2025, Hyperliquid, a prominent decentralized derivatives trading network with a trading volume of at least $400 billion, is poised to introduce its own platform-specific stablecoin. While Circle’s USDC commands a more substantial trading market presence, facilitating popular trading pairs such as HYPE USDC, Hyperliquid contends that a proprietary stablecoin could redirect profits towards HYPE crypto holders.
As reported by Coingecko, the total crypto market capitalization of stablecoins surpasses $290 billion. USDT is currently in the lead, securing almost 50% of the crypto market with more than $169 billion in circulation, predominantly on Tron and ETH. USDC, the second largest stablecoin, has issued upwards of $72 billion, boasting a significant footprint on Solana and Hyperliquid.
(Source: Coingecko)
Given its straightforward redemption process back to USD, USDC has become the preferred stablecoin, driving Hyperliquid’s community-focused available volume provision that allows the network to handle billions in trading volume every month. Circle issues USDC in adherence to U.S. regulations, further clarified by the GENIUS Act, which details the prerequisites for stablecoin issuers maintaining USD parity on significant public blockchains.
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Hyperliquid Aims for Its Own Stablecoin, Circle Has Other Intentions
With Circle, Tether, and other leading stablecoin issuers reaping billions in profits, and some of these tokens energizing the Hyperliquid ecosystem, the perpetual trading protocol seeks to redirect earnings back to HYPE holders. To realize this goal, Hyperliquid intends to have a third party issue USDH. As of September 10, multiple bidders are competing, with Hyperliquid validators expected to select the winning proposal by September 14.
Potential candidates include Paxos, the creators of BUSD; Ethena, which recently teamed up with Binance for its USDe stablecoin; Sky, a dominant force in decentralized money markets; Agora; Native Markets; and others. On Polymarket, speculators believe Native Markets will be the issuer of USDH.
(Source: Polymarket)
Circle, which holds a dominant position in USDC trading on Hyperliquid, is not inclined to develop USDH but plans to remain focused on USDC. USDC powers 95% of Hyperliquid’s trading pairs, facilitating seamless transactions involving assets like PRICE SURGE and HYPE. In a post on X, Circle’s CEO, Jeremy Allaire, asserted their commitment to engaging with the “HYPE ecosystem significantly” and “aim to play a substantial role and contribute to the ecosystem.”
Don’t Believe the Hype
We are coming to the HYPE ecosystem in a big way. We intend to be a major player and contributor to the ecosystem.
Happy to see others purchase new USD tickers and compete
Hyper fast native USDC with deep and nearly instant cross chain…
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) September 7, 2025
Agora, Paxos, Ethena, Sky, and Frax are all competing to issue USDH, promising to share reserve yields with the community to boost HYPE buybacks or price floor community enhancements.
Conversely, Circle aims to derive USDC’s integration directly into Hyperliquid’s layer-1, thereby eliminating bridging expenses incurred from Arbitrum, while resisting profit sharing. Any efforts to reroute revenues to Hyperliquid would be significant, adversely affecting CIRCL shareholders.
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Will Circle Endure? CIRCL Stock Faces Decline
Consequently, it remains uncertain how Circle will maneuver through the stablecoin landscape within Hyperliquid, particularly as validators gear up to vote for a USDH issuer prepared to redirect a substantial portion of revenue back to HYPE holders.
Should traders quickly transition to USDH and purchase speculating on potential profits, Circle’s earnings may rapidly decline. This scenario could escalate, especially since the U.S. Federal Reserve likely intends to lower rates in September, diminishing yields on Treasuries and bonds.
Despite Circle’s advantages in market fluidity, regulatory adherence, and trading market capitalization, USDC’s prominence on Hyperliquid could wane, which would have ramifications for CIRCL stock.
(Source: CIRCL, TradingView)
As of September 10, CIRCL stock has decreased by 60% from the highs in July, and amidst the market fluctuation in Hyperliquid, the chances of CIRCL stock dropping below $100 have risen.
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Hyperliquid USDH vs. Circle USDC: Will CIRCL Stock Crash?
- Hyperliquid is gearing up to introduce a native stablecoin, USDH
- Native Markets likely emerging as the next issuer
- Circle intends to stick with USDC
- Is CIRCL stock at risk of crashing below $100?
The post Will Hyperliquid USDH End Circle and USDC? CIRCL Stock Plummets appeared first on 99Bitcoins.
