According to CoinMeta, as reported by an early issuer of in, Morgan Stanley downgraded its rating on Circle shares from "Hold" to "Reduce Holdings" on August 3, with the target price lowered from $106 to $38. Analyst James Faucette stated that the reasons for the downgrade included a contraction in USDC liquidity and a shift in the business towards a transaction revenue model with lower profit margins. The report reduced its forecasts for Circle's USDC scale by approximately 33% and 44%, respectively, and estimated that GAAP earnings per share would be about 3% and 20% lower than market consensus. Analysts pointed out that tokenized money market funds and bank deposit products are putting pressure on USDC balances and revenue sharing ratios, and that the economic model of Circle's USYC products is weak. The trading volume of the agency payment business has dropped to about $41,900 per day, implying an average transaction amount of about $0.24. Open USD adopts a shared governance and reserve income model, which increases the cost of maintaining USDC distribution channels.