Sky’s Stablecoin USDS Climbs to $2 Billion Circulation in Breakout Month
Sky's stablecoin, USDS, has surged to $2 billion in circulation, claiming the fifth spot among stablecoins. Discover how it achieved 99% growth in just one month.
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Sky’s Stablecoin USDS Climbs to $2 Billion Circulation in Breakout Month
Sky, the decentralized finance (DeFi) initiative formerly known as MakerDAO, has reached a significant milestone with its stablecoin, USDS, surpassing $2 billion in circulation. This growth represents a 99% increase in supply over the last 30 days, making USDS the fastest-growing stablecoin among the top ten by market capitalization.
USDS Climbs to Top Five While DAI Holds Strong
According to metrics from DefiLlama, USDS now ranks fifth among stablecoins by market cap, sitting just below DAI, which holds the fourth spot. Despite its rapid expansion, USDS operates alongside DAI, maintaining a 1:1 exchange rate with it. Sky’s data reveals that out of the 2.02 billion USDS in circulation, 1.23 billion originated from DAI swap upgrades.
While USDS has gained momentum, DAI also experienced modest growth over the same period, increasing its supply by 4.49% to 4.719 billion coins. Combined, the circulating supplies of USDS and DAI amount to $6.83 billion, underscoring their shared prominence in the stablecoin market.
Multi-Chain Deployment and APY Incentives
One key differentiator for USDS is its deployment across Ethereum, Base, and Solana. Though DAI boasts broader blockchain accessibility, USDS offers competitive advantages, such as an advertised annual percentage yield (APY) of 12.50% for holders. This incentive is subject to variability and is governed by the Sky Ecosystem’s decentralized on-chain governance.
Sky Ecosystem’s Broader Impact
Sky’s overall ecosystem reports a total value locked (TVL) of $14.5 billion as of January 18, 2025. This figure highlights its growing influence within the DeFi sector, supported by the expanding presence of USDS and other emerging stablecoins like Usual USD (USD0), Ethena’s USDE, and USDX Money’s USDX.
The Path Forward for USDS
The rapid rise of USDS signals a strengthening foothold in the stablecoin market, supported by its unique features, governance structure, and growth trajectory. Its climb to $2 billion in circulation not only underscores its breakout success but also solidifies Sky’s position as a key player in the evolving DeFi landscape.
As USDS continues to gain traction, its potential for further adoption and integration into the broader DeFi ecosystem makes it one to watch in the coming months.
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