Sky’s Stablecoin USDS Climbs to $2 Billion Circulation in Breakout Month

As of this week, Sky, the decentralized finance (defi) initiative previously recognized as Makerdao, has witnessed its newly launched stablecoin, USDS, exceed the $2 billion threshold. Among the top ten stablecoins, it experienced the most significant expansion in supply over the past month.

Sky’s USDS Climbs to Top Five While $DAI Holds Its Ground

Sky’s stablecoin, USDS, has recorded a 99% growth in supply over the last 30 days, according to stablecoin metrics from defillama.com. As a relatively new entrant to the stablecoin market, USDS operates alongside $DAI and maintains a 1:1 exchange rate with it.

Data from Sky’s website indicates that there are currently 2.02 billion USDS in circulation, with 1.23 billion of that total originating from $DAI swap upgrades. Despite USDS’s rapid expansion, $DAI also experienced growth over the past month, with its supply rising 4.49% to reach 4.719 billion coins, as noted by defillama.com.

Source: Sky’s website.

$DAI is accessible across a much wider range of blockchains, whereas USDS is currently deployed on Ethereum, Base, and Solana. By market capitalization, USDS has now claimed the fifth spot, just below $DAI, which ranks fourth.

Source: Sky’s website.

A key distinction between the two is that USDS holders can earn an annual percentage yield (APY) on their holdings. As of now, Sky’s website advertises a 12.50% APY for USDS.

However, the platform includes a disclaimer emphasizing that the Sky Savings Rate (SSR) is variable, governed by Sky Ecosystem’s decentralized onchain governance, and configured on the Ethereum blockchain. Together, the circulating supplies of $DAI and USDS amount to a combined value of $6.83 billion.

Sky, as a whole, reports a total value locked (TVL) of approximately $14.5 billion as of Jan. 18, 2025. Elsewhere in the stablecoin sector, other tokens like usual usd (USD0), Ethena’s USDE, and USDX Money’s USDX continue to make progress as they expand their presence. As Sky’s stablecoin USDS climbs to notable prominence within the defi sector, its growing value suggests a strengthening foothold.