10x Research: Stablecoin economic competition heats up, divergence between Circle and Coinbase intensifies

Odaily reported that 10x Research posted an analysis on X platform, pointing out that the stablecoin economy competition has unfolded between Circle and a certain exchange. Circle's stock price recently dropped about 0% in a single day. Some investors attribute this decline to the uncertainty brought by the CLARITY Act, while others believe the act will provide structural benefits. Circle supports a federal-level regulatory framework for stablecoins in exchange for USDC’s institutional legitimacy and long-term expansion prospects, while the exchange places more emphasis on short-term profits through yield-bearing balances. This has resulted in fundamentally opposing business models. Under the regulatory framework, Circle may abandon some of its high-profit distribution models, but will gain more sustainable “regulatory certainty,” which could drive institutional adoption, global settlement scenarios, and deeper integration with the traditional financial system.

10x Research further noted that, given the current market environment, it will re-examine its previous strategy of “going long on Circle and shorting the exchange” to assess whether this approach remains effective.