Bitcoin-backed stablecoin USDa has made waves in the cryptocurrency world by becoming the second-largest collateralized debt position (CDP) project globally, with a total market size of $84.10 million. Launched on Nov. 11, USDa has quickly gained traction in the market due to its unique features and innovative approach to stablecoin creation.
According to Avalon Labs, USDa’s total market size includes $68.10 million in supplied assets and $20.85 million in borrowed assets. What sets USDa apart from other stablecoins is its pegging to Bitcoin (BTC) and utilization of LayerZero’s cross-chain technology. This makes USDa the first-ever overcollateralized stablecoin to be backed by Bitcoin, earning it the nickname “Bitcoin Money.”
USDa’s integration with both decentralized finance (DeFi) and centralized finance (CeFi) ecosystems has allowed it to provide institutional liquidity for both permissioned and permissionless environments. With over $700 million in total value locked (TVL), USDa has quickly become a strong competitor in the decentralized financial lending space.
The stablecoin’s total value locked in BNB Chain, Ethereum, and Taiko is $483 million, with a 30-day increase of 0.65%. USDa currently boasts $63.25 million in liquidity and an APY borrow rate of around 1.37%. With 95 holders in total and over $700 million in total TVL, USDa is well-positioned to continue its growth and expansion in the market.
While USDa is making significant strides in the CDP space, it still lags behind MakerDAO, the leader in CDP projects, with a market cap of $4.576 billion and over 4.576 billion DAI in circulation. MakerDAO’s dominance in the DeFi space is attributed to its use of Ethereum-based collateral, which has allowed it to maintain its position as a market leader.
The DeFi lending marketplace, which functions as a self-replicating ecosystem separate from traditional banking infrastructure, has been valued at $13.61 billion in 2022. Despite its relatively small size, the global stablecoin DeFi market is expected to experience a 46% compound annual growth rate (CAGR) in the next six years.
Overall, USDa’s impressive growth and innovative approach to stablecoin creation have positioned it as a key player in the evolving DeFi landscape. As the cryptocurrency market continues to expand and evolve, USDa’s unique features and strong market presence are likely to drive further growth and adoption in the coming years.