10x Research: The stablecoin economy game is heating up; will re-evaluate the "Long Circle, Short Coinbase" strategy

Deep Tide TechFlow News, on March 25th, 10x Research posted an analysis on X platform indicating that the battle over stablecoin economics has begun between Circle and Coinbase. Circle’s stock price recently dropped about 20% in a single day, with some investors attributing this to the uncertainty caused by the CLARITY Act. However, others believe the bill could be a structural positive. Circle supports a federal-level stablecoin regulatory framework in exchange for institutional legitimacy and long-term growth potential for USDC, while Coinbase focuses more on short-term profits through yield-bearing balances, creating a business model conflict. Under the regulatory framework, Circle may abandon some high-margin distribution models but will gain more sustainable “regulatory certainty,” which could promote institutional adoption, global settlement scenarios, and deeper integration with traditional financial systems. 10x Research added that, given the current market environment, they will reassess the previously proposed strategy of “going long on Circle and short on Coinbase” to determine if it remains effective.