Omar, an investor at Dragonfly Capital, predicts Circle's profits will be significantly impacted by impending US interest rate cuts. He estimates a 1% rate cut could slash Circle's annual revenue by $618 million (23%) and operating profit by $303 million (30%). Circle, the issuer of USDC, generates revenue by investing the reserves backing its stablecoin in assets like US Treasury bills. Lower interest rates directly reduce the yield on these investments, impacting Circle's bottom line. To mitigate these potential losses, Circle needs to substantially increase USDC circulation by an additional $28 billion – a 44% increase from its current $64 billion. This pressure may explain Circle's recent move to sell $1.5 billion worth of shares and explore new transaction fee-based services to diversify its revenue streams and maintain profitability in a lower-interest-rate environment. The stablecoin market is becoming increasingly competitive, adding further pressure. ```

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