Stablecoin Market Overview: Trends in Innovation and Diversification

The total market capitalization of stablecoins has surpassed 205 billion US dollars. Although USDT still holds the top market share, it is showing a continuous downward trend. Currently, the stablecoin market is exhibiting a diversified development trend, with new types of stablecoins rapidly emerging in addition to traditional stablecoins.

![Stable Dog Original] The total market value of stablecoins exceeds 205 billion USD, and the market share of USDT continues to decline. This article helps you understand the diversification of stablecoins](https://img-cdn.gateio.im/webp-social/moments-f10c520f8ffcf9e023de47aff5bd9c97.webp)

Traditional Stablecoins

USDT (Tether)

• Issuer: Tether
• Launch time: 2014
• Value pegging: Linked to the US dollar at a 1:1 ratio, backed by reserve assets.
• Market Position: One of the earliest and largest stablecoins by trading volume globally.
• Controversy: The issue of reserve transparency has always been controversial.

USDC (USD Coin)

• Issuer: Founded by Circle and Coinbase
• Launch date: 2018
• Features: Strictly comply with U.S. regulatory requirements, high transparency of reserve assets.
• Market Position: The second largest stablecoin after USDT, highly favored by institutional users.

FDUSD (First Digital USD)

• Issuer: First Digital Labs
• Launch time: 2023
• Pegging mechanism: 100% US dollars or equivalent cash equivalents as reserves
• Blockchain Support: Compatible with Ethereum and Binance Smart Chain

DAI

• Issuer: MakerDAO
• Launch time: 2017
• Features: Decentralized, over-collateralized stablecoin
• Operating Network: Ethereum and EVM-compatible blockchains

![Stable Dog Original] The total market value of stablecoins exceeds 205 billion USD, and the market share of USDT continues to decline. A comprehensive look at the diversification of stablecoins](https://img-cdn.gateio.im/webp-social/moments-24e050d4e35de24e0bd03b3204af5336.webp)

New Stablecoin

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

1. Provide returns through low-risk asset investments, 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 traditional financial instruments.

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 income
• Current yield: approximately 8.64%

2. USD0

• Issuer: Usual Protocol
• Features: Issued with RWA assets as collateral at a 1:1 ratio.
• Operating mechanism: Users deposit assets to obtain LDT synthetic assets, which can be traded freely.

3. Sky Dollar (USDS)

• Issuer: Sky ( original MakerDAO )
• Features: Can be exchanged with DAI at a 1:1 ratio, SKY governance tokens are distributed annually to USDS holders.

4. USDD

• Issuer: TRON Joint Reserve
• Features: Over-collateralized endorsement of various mainstream digital assets, circulating on multiple public chains.

5. BlackRock USD (BUIDL)

• Issuer: BlackRock
• Features: Tokenized fund, investing in low-risk financial instruments
• Source of income: interest from underlying assets, current yield is approximately 4.5%

6. Ondo US Dollar Yield (USDY)

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

7. USDX Money (USDX)

• Issuer: Stables Labs
• Operating mechanism: Generate income through Delta-neutral investment strategy.
• Features: Offers a wide range of coin options with high potential returns

8. Frax (FRAX)

• Issuer: Frax Finance
• Operating mechanism: a combination of partial collateral and algorithmic mechanism
• Sources of income: interest income, liquidity mining, governance token earnings
• Current yield: approximately 10%

9. Resolv USD (USR)

• Operating mechanism: Using ETH and derivatives as collateral, protecting assets through hedging operations.
• Sources of income: ETH staking rewards and the difference from hedging operations

10. M By M⁰ (M)

• Features: Decentralized stablecoin protocol that allows users to earn yields from collateral.
• Operating mechanism: Minting M tokens through off-chain collateral, supervised by custodians and validators.

11. yala

• Features: Stablecoin protocol based on the Bitcoin ecosystem
• Operating mechanism: Users deposit BTC to borrow stablecoin $YU, and can participate in DeFi products to earn returns.

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

![Stable Dog Original] The total market value 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 value 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-0f7c5d6c3d04cbcd34dbc28001937c9b.webp)

![Stable Dog Original] The total market value 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-e20c3debb0b68f8fb6b76a8e25937f25.webp)

![Stable Dog Original] The total market value 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-f2f2064afc1144a3bba195f6e8f4acbd.webp)

![Stable Dog Original] The total market value of stablecoins exceeds 205 billion USD, and the market share of USDT continues to decline. Read to understand the diversification of stablecoins](https://img-cdn.gateio.im/webp-social/moments-6a5718de79b6770cd22ae084a9f1c2ff.webp)

![Stable Dog Original] The total market value of stablecoins exceeds 205 billion USD, and the market share of USDT continues to decline. Read this article to understand the diversification of stablecoins](https://img-cdn.gateio.im/webp-social/moments-265d3598aa9ae601aadb9492c0d53195.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 explains the diversification of stablecoins](https://img-cdn.gateio.im/webp-social/moments-21cc8dceb9c20828360bedd69b86fa96.webp)

Summary

The stablecoin market is experiencing innovation and diversification. Traditional fiat-backed stablecoins such as USDT and USDC still dominate, but new types of stablecoins are attracting market attention by offering additional returns through innovative mechanisms. Investors should carefully assess risks when participating and pay attention to the long-term sustainability and regulatory compliance of the projects.