The total market capitalization of stablecoins has surpassed $205 billion, and new protocols are sparking a competition for yields.

2025-07-17 16:42:01

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Stablecoin Market Analysis: Total market capitalization exceeds $205 billion, diversification trend is obvious.

Stablecoins, as an important component of the cryptocurrency ecosystem, have a total market capitalization that has surpassed 20.5 billion USD. The market landscape is changing; although the dominance of USDT remains, its market share is continuously declining. At the same time, new stablecoins are emerging, providing users with more options.

![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](https://img-cdn.gateio.im/webp-social/moments-f10c520f8ffcf9e023de47aff5bd9c97.webp)

Traditional Stablecoins

USDT (Tether)

Issuer: Tether
Launch date: 2014
Value pegging: Pegged to the US dollar at a 1:1 ratio, backed by reserve assets.
Market Position: One of the earliest, largest trading volume, and most liquid stablecoins in the world.
Controversy: The issue of reserve transparency has sparked widespread discussion.

USDC (USD Coin)

Issuer: Founded by Circle and Coinbase, regulated by a central consortium.
Launch date: 2018
Features: Strict compliance with regulations, high transparency of reserve assets
Value peg: Pegged to the US dollar at a 1:1 ratio, with reserves consisting 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
Pegging mechanism: 100% US dollars or equivalent cash equivalents as reserves
Blockchain Support: Compatible with Ethereum and Binance Smart Chain
Features: Mainly supported by Binance exchange, high market acceptance.

DAI

Issuer: MakerDAO
Release Date: 2017
Features: Decentralized, over-collateralized stablecoin
Value pegging: Pegged to the US dollar at a 1:1 ratio through smart contracts and collateral mechanisms.
Operating Network: Ethereum and other EVM-compatible blockchains
Market Position: Currently the algorithm stablecoin with the highest market capitalization.

![Stable Dog Original] The total market capitalization of stablecoins exceeds 205 billion USD, and the market share of USDT continues to decline. This article explains the diversity of stablecoins](https://img-cdn.gateio.im/webp-social/moments-24e050d4e35de24e0bd03b3204af5336.webp)

New Stablecoin

The new stablecoin not only maintains price stability but also provides additional returns to holders through innovative models. Key features include:

Provide returns by investing in low-risk assets, staking native coins, or using structured financial strategies.
Use collateral such as government bonds to maintain price stability and high liquidity
Combine on-chain assets with off-chain funds, bonds, etc.

1. USDe

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

2. USD0

Issuer: Usual Protocol
Features: Issued with RWA assets as reserves at a 1:1 ratio
Mechanism: Users deposit assets to receive LDT coins, representing the initial value of the deposit.

3. Sky Dollar (USDS)

Issuer: The original MakerDAO( has been renamed to Sky)
Launch date: September 18, 2023
Exchange rules: DAI can be exchanged 1:1 for USDS, MKR can be exchanged 1:24000 for SKY

4. USDD

Issuer: TRON Joint Reserve
Features: Decentralized over-collateralized stablecoin, backed by various mainstream digital assets
Circulating Chains: TRON, Ethereum, BNB Chain and 11 other public chains

5. BlackRock USD (BUIDL)

Issuer: BlackRock
Launch date: March 2024
Operating mechanism: Issuing tokenized shares through Ethereum, investing in low-risk financial instruments
Earnings: Daily interest calculation, monthly distribution, current yield rate is about 4.5%

6. Ondo US Dollar Yield (USDY)

Issuer: Ondo Finance
Operating mechanism: Supported by short-term US Treasury bonds and bank demand deposits
Sources of income: returns from underlying assets and compound interest returns
Current yield: 4.65% APY

7. USDX Money (USDX)

Issuer: Stables Labs
Operating mechanism: Generate income through Delta-neutral investment portfolio strategy
Features: Offers multiple coin options, potential returns are higher but the risks are also greater.

8. Frax (FRAX)

Issuer: Frax Finance
Operational mechanism: a combination of partial collateral and algorithmic mechanisms
Sources of income: interest income, liquidity mining, governance token FXS
Current yield: approximately 10% APY

9. Resolv USD (USR)

Operating mechanism: Protect assets through ETH and derivatives collateral and hedging operations.
Source of income: ETH staking rewards and hedging operation spreads

10. M By M⁰ (M)

Issuer: M⁰
Operating mechanism: Minting M tokens by collateralizing off-chain assets
Sources of income: collateral income, minting fees, penalties

11. yala

Features: Stablecoin protocol based on the Bitcoin ecosystem
Operating mechanism: Users deposit BTC to borrow stablecoin $YU and invest in DeFi products to earn returns.
Current status: Testnet phase

![Stable Dog Original] The total market capitalization of stablecoins exceeds 205 billion USD, and the market share of USDT continues to decline. This article explains the diversification of stablecoins. (https://img-cdn.gateio.im/webp-social/moments-3e77d26186398f8b8664db9dc062e72b.webp)

Stablecoin Market Summary

The stablecoin market is large and serves as the cornerstone of DeFi and future PayFi. In the short term, stablecoins backed by fiat reserves such as USDT/USDC will continue to dominate the market. New types of stablecoins can be mainly divided into two categories:

Using traditional financial assets such as government bonds as reserves, the returns are relatively low.
Maintain stability through arbitrage, but there are issues with transparency and security.

The market capitalization of stablecoins has the potential to expand further, but investors should approach platform tokens with caution to avoid becoming bag holders. For ordinary users, it is advisable to pay attention to emerging stablecoin protocols to seize early participation opportunities and obtain airdrops and staking rewards.

![Wangou Original] The total market capitalization of stablecoins exceeds 205 billion USD, and the market share of USDT continues to decline. This article explains the diversification of stablecoins. (https://img-cdn.gateio.im/webp-social/moments-410e407562f23af4f7f20a50cd51c38a.webp)

![Stable Dog Original] The total market capitalization of stablecoins exceeds 205 billion USD, and the market share of USDT continues to decline. Understand the diverse stablecoins in one article](https://img-cdn.gateio.im/webp-social/moments-0f7c5d6c3d04cbcd34dbc28001937c9b.webp)

![Stable Dog Original] The total market capitalization of stablecoins exceeds 205 billion USD, and the market share of USDT continues to decline. This article helps you understand the diversity of stablecoins](https://img-cdn.gateio.im/webp-social/moments-f2f2064afc1144a3bba195f6e8f4acbd.webp)

![Steady Dog Original] The total market capitalization of stablecoins exceeds 205 billion USD, and the market share of USDT continues to decline. Understand the diversified stablecoins in one article](https://img-cdn.gateio.im/webp-social/moments-6a5718de79b6770cd22ae084a9f1c2ff.webp)

![Stable Dog Original] The total market capitalization of stablecoins exceeds 205 billion USD, and the market share of USDT continues to decline. Read this article to understand the diversity of stablecoins](https://img-cdn.gateio.im/webp-social/moments-265d3598aa9ae601aadb9492c0d53195.webp)

![Dogecoin Original] The total market capitalization of stablecoins exceeds 205 billion USD, and the market share of USDT continues to decline. Understand the diversified stablecoins in one article](https://img-cdn.gateio.im/webp-social/moments-21cc8dceb9c20828360bedd69b86fa96.webp)

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