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The latest data highlights that the stablecoin market currently sits at $173 billion, with two recently introduced U.S. dollar-backed stablecoins showing significant growth. The decentralized finance (defi) project Sky, previously known as Makerdao, has minted 1.11 billion USDS, adding approximately 104 million coins to its supply over the past five days. In a parallel development and within roughly the same timeframe, Ripple’s new stablecoin, RLUSD, has also experienced a notable increase in its circulation.
Emerging Stablecoins USDS and RLUSD Show Steady Growth
Although they don’t yet rival the giants like tether (USDT) or usd coin (USDC), Sky’s USDS and Ripple’s RLUSD are steadily gaining traction. Sky, previously known as Makerdao, now manages USDS as part of its recent rebranding effort. This transition included a 1:1 swap mechanism, allowing users to exchange their DAI for USDS, and so far, roughly 571,946,075 DAI have made the switch.
Just five days ago, USDS had a market cap of about $1.006 billion, which has now grown to 1.11 billion USDS. It still has a relatively small user base of 232 unique wallet addresses and the stablecoin has seen around 15,561 transfers since launching. Interestingly, the top 10 holders among the 232 wallets control the vast majority of the circulating USDS. Among the leading holders of USDS are prominent names like Sky, Uniswap, Aave, and Wintermute.
What sets USDS apart from DAI is its yield-bearing nature. According to Sky’s web portal, the stablecoin offers a variable interest rate, which currently sits at 6.5%. In comparison, Ethena’s USDE stablecoin offers a slightly higher yield at 8%. On the other hand, the Blast network’s USDB provides a lower yield of 5.5% as of the latest update. Like USDS, both USDE and USDB have interest rates that fluctuate over time.
Ripple’s new U.S. dollar-backed stablecoin, RLUSD, has expanded its supply from 45.3 million to 60.1 million. This stablecoin is distributed across two blockchains—Ripple’s own ledger and Ethereum. According to data from Cryptoquant.com, 33.75 million RLUSD is currently held on the XRPL network, with the remainder residing on Ethereum. It’s important to mention that RLUSD is still in private beta as it continues to grow.
Currently, RLUSD is not listed on crypto market cap aggregators that rank the top stablecoins. Sites like coingecko.com show the Ripple stablecoin in “preview mode.” As of Sept. 30, both XRPL and Ethereum combined held 4.75 million RLUSD, and since then, its supply has ballooned by 1,165%.
What do you think about the growth RLUSD and USDS has seen in recent times? Let us know what you think about this subject in the comments section below.