Stablecoin Market Analysis: Total market capitalization surpasses 205 billion USD, USDT's market share continues to decline

Recently, the total market capitalization of the stablecoin market has surpassed 205 billion USD, but the market share of USDT is continuously declining. This article will provide a comprehensive analysis of the current mainstream stablecoins, helping readers understand the latest developments in this important market.

![\Stable Dog Original] The total market capitalization of stablecoins exceeds 205 billion USD, USDT's market share continues to decline, understand the diversification of stablecoins in one article

Traditional Stablecoins

USDT (Tether)

• Issuer: Tether
• Launch date: 2014
• Value Pegging: Pegged to the US dollar at a 1:1 ratio, supported by reserve assets such as cash and government bonds.
• Market Position: The world's earliest and largest trading stablecoin, widely used in cryptocurrency trading, cross-border payments, and the DeFi sector.
• Controversy: The issue of reserve transparency has been a matter of great attention.

USDC (USD Coin)

• Issuer: Founded by Circle and Coinbase, regulated by Centre Consortium
• Launch date: 2018
• Compliance: Strictly adhere to U.S. regulatory requirements, undergo monthly audits and public reporting.
• Value pegging: pegged to the US dollar at a 1:1 ratio, with reserves composed of cash and short-term government bonds.
• Market Position: The second largest stablecoin after USDT, favored by institutional users.

FDUSD (First Digital USD)

• Issuer: First Digital Labs
• Launch date: 2023
• Anchoring mechanism: 100% US dollars or equivalent cash equivalents ( such as short-term government bonds ) as reserves, pegged to the US dollar at a 1:1 ratio.
• Blockchain Support: Compatible with Ethereum and Binance Smart Chain

DAI

• Issuer: MakerDAO
• Launch date: 2017
• Value peg: Maintains a 1:1 peg with the US dollar through smart contracts and cryptocurrency collateral mechanisms.
• Operating Network: Ethereum and other EVM-compatible blockchains
• Features: Currently the highest market capitalization algorithm stablecoin

![\Stable Dog Original] The total market capitalization of stablecoins exceeds 205 billion USD, and the USDT market share continues to decline. Understand the diversification of stablecoins in one article

New Stablecoin

The new type of stablecoin not only maintains price stability but also provides additional investment returns for holders. Key features include:

1. Provide returns to users through investments in low-risk assets, staking, or structured financial strategies.
2. Use government bonds and other assets as collateral to maintain price stability and high liquidity.
3. Combine on-chain assets with off-chain funds, bonds, and other instruments.

1. USDe

• Developer: Ethena Labs
• Operating mechanism: Maintains a 1:1 peg to the US dollar through a Delta neutral strategy.
• Sources of income: staking rewards, funding rates, and basis income
• Current yield: sUSDe approximately 8.64% APY

2. USD0

• Issuer: Usual Protocol
• Mechanism: Issue 1:1 using RWA assets as reserves
• Features: Users can deposit assets to receive LDT tokens, representing the initial value of the deposit.

3. Sky Dollar (USDS)

• Issuer: MakerDAO( has been renamed to Sky)
• Features: Can be exchanged with DAI at a 1:1 ratio, distributed to USDS holders at a speed of 6 million SKY per year.

4. USDD (Decentralized USD)

• Issuer: TRON Joint Reserve ( TRON DAO Reserve )
• Features: Over-collateralization of various mainstream digital assets, supports multiple chains

5. BlackRock USD (BUIDL)

• Issuer: 贝莱德(BlackRock)
• Release date: March 2024
• Operating mechanism: Issuing tokenized shares through Ethereum, investing in low-risk financial instruments
• Current yield: about 4.5%

6. Ondo US Dollar Yield (USDY)

• Issuer: Ondo Finance
• Mechanism: Supported by short-term U.S. Treasury bonds and bank deposits
• Sources of income: returns from underlying assets and compound interest
• Current APY: 4.65%

7. USDX Money (USDX)

• Issuer: Stables Labs
• Mechanism: Generate income through Delta-neutral investment portfolio strategy
• Features: Provides a variety of coin options, with higher potential returns but also greater risks.

8. Frax (FRAX)

• Issuer: Frax Finance
• Mechanism: Combination of partial collateral and algorithmic stability
• Sources of income: interest income, liquidity mining, governance token FXS
• Current APY: Approximately 10%

9. Resolv USD (USR)

• Mechanism: Using ETH and derivatives as collateral, protecting assets through hedging operations.
• Source of income: ETH staking rewards and hedging operation spread

10. M By M⁰ (M)

• Mechanism: Allows users to mint M tokens using approved collateral.
• Sources of income: collateral earnings, minting fees, and penalties

11. yala

• Features: Stablecoin protocol based on the Bitcoin ecosystem
• Status: Currently in testnet phase

![\Wangou Original] The total market capitalization of stablecoins exceeds 205 billion USD, and the market share of USDT continues to decline. Understand the diversification of stablecoins in one article

![\Stable Dog Original] The total market capitalization of stablecoins exceeds 205 billion USD, and the market share of USDT continues to decline. Understand the diversity of stablecoins in one article

![\Wangou Original] The total market capitalization of stablecoins exceeds 205 billion USD, the market share of USDT continues to decline, understand the diversification of stablecoins in one article

![\Stable Dog Original] The total market capitalization of stablecoins exceeds 205 billion USD, USDT's market share continues to decline, understand the diversification of stablecoins in one article

![\Stable Dog Original] The total market capitalization of stablecoins surpasses 205 billion USD, the market share of USDT continues to decline, understand the diversification of stablecoins in one article

![\Stable Dog Original] The total market capitalization of stablecoins exceeds 205 billion USD, and USDT's market share continues to decline. Understand the diversification of stablecoins in one article

![\Stable Dog Original] The total market capitalization of stablecoins exceeds 205 billion USD, USDT's market share continues to decline, understand the diversification of stablecoins in one article

![\Wengou Original] The total market capitalization of stablecoins exceeds 205 billion USD, the market share of USDT continues to decline, understand the diversification of stablecoins in one article

Stablecoin Market Outlook

The stablecoin market is huge and is the cornerstone of DeFi and future PayFi. In the short term, stablecoins supported by fiat currencies such as USDT/USDC will continue to dominate. The development of new stablecoins mainly depends on the platform's business expansion capabilities and market recognition. Investors can pay attention to emerging stablecoin protocols, but should be cautious about the investment risks associated with platform coins.