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Crypto Billionaire Justin Sun’s USDD Stablecoin Launches on Ethereum – Can it Overtake Tether?

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Justin Sun’s USDD stablecoin formally launched on Ethereum, increasing past its native TRON blockchain to problem Tether’s dominance.

The Ethereum launch coincides with the community’s stablecoin supply reaching a record $165 billion, creating an opportune second for USDD to faucet into the most important decentralized finance ecosystem whereas Tether maintains its $169 billion market cap lead.

USDD’s multi-chain deployment comes with an airdrop marketing campaign providing as much as 12% APY rewards for Ethereum holders, although the token faces robust headwinds given Tether’s 367 occasions bigger market capitalization.

USDD’s Algorithmic Model Faces Ethereum Test

The TRON DAO Reserve’s stablecoin operates via overcollateralization, sustaining a 204.5% backing ratio, primarily supported by TRX tokens after Sun removed $726 million in Bitcoin collateral in August.

Following a complete CertiK audit, the Ethereum deployment introduces a Peg Stability Module, which permits seamless 1:1 swaps with USDT and USDC to handle liquidity issues.

The mechanism builds on classes from Terra’s algorithmic collapse, although USDD weathered main depegging occasions, together with drops to $0.983 throughout Terra’s May 2022 implosion and $0.97 throughout FTX’s November collapse.

Meanwhile, the launch options tiered rewards starting from 12% at low whole worth locked to six% as adoption will increase, with distributions occurring each eight hours via the Merkl Dashboard primarily based on day by day snapshots.

The contract tackle went reside with instant USDT and USDC swap performance. Future plans embody launching sUSDD as an interest-bearing model for passive yield era.

Beyond DeFi integration, USDD’s Ethereum presence spans 10 blockchain networks, together with BSC, Avalanche, and Polygon, supported by cross-chain bridges from Stargate Finance, Symbiosis, and DeBridge.

The deployment coincides with TRON’s broader ecosystem development, together with SunSwap sustaining $3 billion in month-to-month quantity and JustLend experiencing a 23% enhance in borrowing transactions in comparison with 2024 ranges.

USDD Confronts Tether’s Trillion-Dollar Ecosystem

Tether’s supremacy seems nearly unassailable. Its day by day buying and selling quantity exceeds USDD’s by an element of 23,500 whereas sustaining near-universal trade assist throughout centralized and decentralized platforms.

In July, CryptoQuant data revealed that TRON surpassed Ethereum in USDT liquidity with $80.8 billion versus $73.8 billion.

USDT now processes over $24.6 billion day by day on TRON alone via 2.3 to 2.4 million transactions, dwarfing most competing stablecoins’ whole volumes throughout all networks.

This infrastructure benefit extends to order backing, the place Tether claims 75.86% U.S. Treasury payments and 12.09% in a single day repos, totally different from USDD’s risky TRX-heavy collateral construction.

Crypto Billionaire Justin Sun's USDD Stablecoin Launches on Ethereum – Can it Overtake Tether?
Binance Stablecoin Reserve (Source: Cryptoquant)

Meanwhile, Binance at present instructions 67% of all trade stablecoin reserves with $44.2 billion, together with $37.1 billion in USDT and $7.1 billion in USDC.

Yet the stablecoin sector exhibits rising fragmentation as Chainalysis reports $2.5 trillion in transaction volume sector-wide, with specialised gamers concentrating on particular niches.

So far, rising opponents embody MetaMask’s planned mUSD for pockets integration and Paxos’s USDH proposal providing 95% income sharing to token holders.

Smaller stablecoins have additionally demonstrated fast development trajectories, with EURC increasing from $47 million to $7.5 billion in euro-denominated transactions over the previous yr. Similarly, PYUSD accelerated from $783 million to $3.95 billion over the identical interval.

Additionally, regulatory readability from the EU’s MiCA and the U.S. GENIUS Act creates alternatives for compliant options to seize market share from established gamers dealing with ongoing scrutiny.

This regulatory atmosphere advantages main stablecoins like USDC, capturing institutional corridors, USDT dominating rising markets as digital money, and newer entrants concentrating on specialised use circumstances.

Industry projections counsel the sector is about to proceed rising and will attain $1 trillion in annual payment volume by 2028, with Citigroup forecasting much more large growth to over $2 trillion market cap by 2030.

The submit Crypto Billionaire Justin Sun’s USDD Stablecoin Launches on Ethereum – Can it Overtake Tether? appeared first on Cryptonews.

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