The stablecoin market size exceeds 205 billion USD, and the share of USDT is gradually declining.

Stablecoins, as an important component of the cryptocurrency ecosystem, have a total market capitalization of over 205 billion USD. This article will comprehensively introduce the types, operational mechanisms, and development trends of the current mainstream stablecoins.

![\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

Traditional Stablecoins

USDT (Tether)

• Issuer: Tether
• Launch time: 2014
• Value Pegging: Pegged to the US Dollar at a 1:1 ratio, backed by reserve assets.
• Market Position: One of the earliest and largest trading stablecoins in the world
• Controversy: The transparency of reserves has always been a focus of attention.

USDC ( USD Coin )

• Issuer: Founded by Circle and Coinbase
• Launch time: 2018
• Features: Strong compliance, audited monthly and public reports
• 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 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 other EVM-compatible blockchains

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

New Stablecoin

New stablecoins not only maintain price stability but also provide additional investment returns for holders. Key features include:

1. Provide returns through low-risk asset investments, staking, or financial strategies.
2. Maintain price stability and high liquidity
3. Combining on-chain assets with off-chain financial instruments

1. USDe

• Developer: Ethena Labs
• Operating mechanism: Maintaining 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: approximately 8.64%

2. USD0

• Issuer: Usual Protocol
• Features: Issued 1:1 with RWA assets as reserves.
• Operating mechanism: Users deposit assets to obtain LDT coin

3. Sky Dollar (USDS)

• Issuer: MakerDAO( renamed to Sky)
• Exchange Rules: DAI can be exchanged 1:1 for USDS, MKR can be exchanged 1:24000 for SKY.
• Allocation mechanism: 600 million SKY will be distributed to USDS holders every year.

4. USDD

• Issuer: Tron Joint Reserve
• Features: Over-collateralized endorsement of multiple mainstream digital assets
• Transparency: Real-time public query of the staking rate

5. BlackRock USD (BUIDL)

• Issuer: BlackRock
• Launch time: March 2024
• Operating Mechanism: Issuing tokenized shares through Ethereum, investing in low-risk financial instruments.
• Source of income: underlying asset yield, currently about 4.5%

6. Ondo US Dollar Yield (USDY)

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

7. USDX Money (USDX)

• Issuer: Stables Labs
• Operating mechanism: Generate income through Delta neutral investment portfolio strategy
• Features: Offers a variety of coin options with high earning potential.

8. Frax (FRAX)

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

9. Resolv USD (USR)

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

10. M By M⁰ (M)

• Operating mechanism: Allows approved participants to mint M tokens based on collateral.
• Sources of income: collateral income, minting fees, penalties

11. yala

• Features: Stablecoin protocol based on the Bitcoin ecosystem
• Operation mechanism: Users deposit BTC to lend $YU and earn returns through DeFi protocols.

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

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

![\Stable Dog Original] Total market value of stablecoins exceeds 205 billion USD, USDT market share continues to decline, understand the diversity of stablecoins in one article

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

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

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

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

Stablecoin Market Outlook

The stablecoin market is enormous and serves as the cornerstone of DeFi and future payment finance. In the short term, stablecoins backed by fiat reserves such as USDT/USDC will continue to dominate. The development of new stablecoins depends on the platform's business expansion capabilities and market recognition. For investors, it is advisable to pay attention to airdrop opportunities and staking rewards from emerging stablecoin protocols, but they should be cautious regarding platform tokens.