J.P. Morgan: Circle faces fierce competition, and the stablecoin market in the United States may become a "zero-sum game".

JPMorgan Chase analysts pointed out that the issuer of stablecoin USDC, Circle, is facing "intense" competition - the issuers of stablecoin USDT, Tether, Hyperliquid, and many financial technology companies are all preparing to launch new stablecoins. However, the analysts also warned that unless the cryptocurrency market significantly expands, the current market dynamics for US stablecoin issuers may ultimately lean more towards a "zero-sum game." The analysts believe that the supply of stablecoins is closely related to the overall market value of cryptocurrencies - this means that if the entire cryptocurrency market does not significantly expand, the issuers are likely just competing for market share, rather than collectively growing the market.