Summary
TLDR: New stablecoins are emerging regularly, aiming to compete with Tether by offering yield on investments. Projects like USDY and USDe are gaining traction by providing yield-bearing tokens backed by US Treasurys or a cash-and-carry trade strategy. While these new stablecoins show promise, Tether still dominates the market.
Key Points
1. Google “new stablecoin” every week or so, and the odds are pretty good you’ll see another one emerging from stealth.
2. Tether currently dominates stablecoin trading, but potentially clawing away some of its business could be quite lucrative. The USDT creator reported nearly $1 billion per month in profit in the last quarter of 2023.
3. A large part of Tether’s appeal for traders is its liquidity. There are over 100 billion USDT in existence, which represent over 70% of all stablecoins, according to DeFiLlama. But a new crop of upstart stables are hoping to beat Tether on a different point — yield.