The diversification of the stablecoin market brings both gains and risks with new protocols.

2025-08-04 05:27:24

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Overview of the Stablecoin Market: Opportunities and Challenges in a Diversified Trend

The total market value of stablecoins has surpassed 205 billion USD, showing a trend of diversified development. Although USDT still dominates, its market share continues to decline, and new types of stablecoins are constantly emerging.

![\Stable Dog Original] The total market value 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: Linked to the US dollar at a 1:1 ratio, backed by reserve assets.
Market Position: The largest stablecoin by trading volume and liquidity globally.
Controversy: The issue of reserve transparency has attracted much attention.

USDC (USD Coin)

Issuer: Circle and Coinbase co-founded
Launch Date: 2018
Features: Strong compliance, high transparency of reserve assets
Market Position: The second largest stablecoin after USDT

FDUSD (First Digital USD)

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

DAI

Issuer: MakerDAO
Launch time: 2017
Features: decentralized, over-collateralized stablecoin
Operating Network: Ethereum and other EVM compatible chains

![\Stable Dog Original] The total market value of stablecoins exceeds 205 billion USD, 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 returns to users through innovative models.

USDe

Developer: Ethena Labs
Mechanism: Maintain the USD peg through a Delta neutral strategy
Sources of income: staking rewards, funding rates, and basis income
Features: High yield, has partnered with BlackRock to launch USDtb

![\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

USD0

Issuer: Usual Protocol
Mechanism: Issue 1:1 using RWA assets as reserves
Features: Introduce various RWA assets to enhance liquidity and security

Sky Dollar (USDS)

Issuer: Sky ( original MakerDAO )
Features: Can be exchanged 1:1 with DAI, SKY governance token is distributed annually.

USDD

Issuer: TRON Joint Reserve
Features: Over-collateralized endorsement of various mainstream digital assets

BlackRock USD (BUIDL)

Issuer: BlackRock
Features: Invest in cash, U.S. Treasury bonds, and other low-risk instruments
Earnings: Daily accrued earnings, distributed monthly

Ondo US Dollar Yield (USDY)

Issuer: Ondo Finance
Mechanism: Supported by short-term US Treasury bonds and bank deposits
Earnings: Yield from underlying assets and compound earnings

USDX Money (USDX)

Developer: Stables Labs
Mechanism: Earn income through Delta-neutral investment portfolio strategy
Features: Provides multiple coin options, potential returns are higher.

Frax (FRAX)

Issuer: Frax Finance
Mechanism: Combination of partial collateral and algorithmic stability
Sources of income: interest income, liquidity mining, governance tokens

Resolv USD (USR)

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

M By M⁰ (M)

Mechanism: Mint M tokens through approved collateral
Features: Off-chain collateral generates on-chain stablecoin

yala

Features: Stablecoin protocol based on the Bitcoin ecosystem
Mechanism: Users deposit BTC and borrow $YU stablecoin.

![\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

Summary

The stablecoin market is undergoing significant changes, with new types of stablecoins continuously emerging. They are mainly divided into two categories: one type is backed by traditional financial assets, offering relatively stable returns; the other type maintains stability through arbitrage, posing higher risks. For investors, paying attention to emerging stablecoin protocols may bring opportunities for airdrops and staking rewards, but they should be cautious of the risks associated with platform tokens.

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

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