The stablecoin market landscape is changing, YBS may become a new trend

With the turmoil in the global financial system, the cryptocurrency market is undergoing new changes. The traditional dollar hegemony is being challenged, creating opportunities for the development of on-chain stablecoins, especially yield-bearing stablecoins (YBS).

Currently, the stablecoin market is still primarily anchored to the US dollar, while non-USD stablecoins are still in the exploratory stage. However, some reserve-backed stablecoins are expected to become mainstream in the future. YBS, as an emerging category, is attracting more and more attention.

From a technical perspective, the issuance of the US dollar relies on the collaboration between the Federal Reserve and the Treasury, amplifying the money multiplier through commercial bank credit. US Treasury bond yields have become the foundation for global financial pricing, and countries need to hold US dollars to reduce transaction costs. However, this system is facing challenges.

Recently, the global economic turbulence may accelerate the development of stablecoins, especially YBS. Compared to traditional stablecoins, YBS generates returns through methods such as staking, improving capital efficiency. However, it also faces the challenge of balancing returns and risks.

Currently, the YBS market is represented by Ethena's USDe and Pendle. USDe generates returns through a hedging model and income-generating assets, but still needs to expand its application scenarios. Overall, the YBS yield has retreated from its previous highs, entering a low-interest era.

The key to the future of YBS lies in increasing market share and user recognition. Only when more people use it as a dollar equivalent, rather than simply pursuing high returns, can the YBS model be sustainable. This requires finding more application scenarios in the DeFi ecosystem and balancing returns and risks.

With the changes in the market landscape, YBS may become a new trend in the stablecoin sector. However, to truly become mainstream, it needs continuous improvement in technology, regulation, and other aspects. The evolution of the stablecoin market in the future is worth ongoing attention.