New Landscape of the Stablecoin Market: De-dollarization and the Rise of Yield-bearing Stablecoins

The cryptocurrency market is undergoing significant changes. The dominance of the US dollar is shaking, and non-US dollar stablecoins and yield-bearing stablecoin (YBS) are rapidly emerging, bringing new opportunities and challenges to the market.

The global economic turmoil is intensifying, and the traditional financial system is facing challenges. Against this backdrop, the stablecoin ecosystem in the cryptocurrency market is undergoing profound changes. Although non-USD stablecoins are still in the experimental stage, some reserve-backed stablecoins are expected to become mainstream. At the same time, YBS is attracting a significant influx of capital with its high yields, reshaping the DeFi ecosystem.

The current market size of stablecoins is approximately $230 billion, with USDT holding a dominant position. However, new stablecoins such as USDe have rapidly emerged, at one point exceeding a market value of $6 billion. These emerging stablecoins employ innovative mechanisms, such as hedging strategies and yield distribution, in an attempt to seek a balance between security and yield.

YBS is essentially a customer acquisition tool, and the high yield is actually a liability of the protocol. To maintain high yields, more users need to see it as a dollar equivalent rather than merely pursuing returns. Currently, the mainstream YBS annual yield is between 5% and 10%, which has significantly decreased compared to early DeFi.

The future development of stablecoins faces many challenges: how to balance regulatory compliance and innovation, how to improve capital efficiency, how to expand application scenarios, etc. However, with the restructuring of the global financial system, stablecoins are expected to play a more important role and welcome new development opportunities.

Overall, the stablecoin market is entering a new era filled with uncertainties. The trend of de-dollarization and the rise of YBS will reshape the industry landscape. Participants need to closely monitor factors such as the policy environment and technological innovation to grasp the pulse of the market.