Sky's USDS Touches Record Highs in Stablecoin Market

A significant shift has occurred in the digital asset market as Sky Protocol’s stablecoin initiative, USDS, sets new standards in the industry. In early March 2026, the total value of stablecoins across the entire decentralized finance (DeFi) sector reached a historic peak, reflecting not only market maturity but also the growing role of projects like Sky.

Historical Expansion of the Stablecoin Market

According to the latest data from DefiLlama, the total market capitalization of stablecoins within the DeFi ecosystem currently stands at $3.124 trillion. This figure represents a 1.18% increase over the past week, indicating ongoing market stability and confidence. Dominating this vast market is USDT, which holds a market share of 58.9%, though other competing projects like USDC are also gaining ground. Recent data shows USDC’s market share is now at 2.78%, illustrating a diversification of stablecoin solutions in the market.

Sky Protocol’s Rapid Rise and USDS’s Success

To understand Sky Protocol’s position, it is essential to examine USDS’s performance. Over the past month, USDS under Sky has experienced an unprecedented 26.7% growth, with its current market value reaching $79.2 billion. This rapid expansion establishes Sky as a major player in the stablecoin market, where USDS accounts for approximately 2.5% of the total market.

Sky Protocol’s revenue-generating capacity is also noteworthy. Recent reports indicate that Sky Protocol’s daily fee income has reached $110 billion, with a daily net income of around $60 billion. On an annual basis, Sky Protocol’s total revenue is approximately $2.11 billion, demonstrating its robust economic model.

Leadership in Yield-Based Stablecoins

A new trend is emerging in the yield-based stablecoin market, where consumers seek not only price stability but also rewards. According to StableWatch analysis, the total circulation of yield-based stablecoins exceeds $215 billion, representing about 6.88% of the entire stablecoin market.

Within this segment, Sky’s sUSDS is attracting market attention with its rapid growth. In just seven days, the total value locked (TVL) of sUSDS surged from $14.6 billion to $60.6 billion, making it the leading yield-based stablecoin. This extraordinary growth reflects increasing investor confidence in Sky Protocol.

In contrast, Ethena’s competing project, sUSDE, has achieved a TVL of $35.3 billion, ranking second in the yield-based stablecoin sector. Although Ethena remains a strong contender, Sky’s sUSDS is currently gaining more momentum in the market and attracting new investors.