USDa Surpasses $84 Million in Market Size, Becomes Second-Largest CDP Project Globally

USDa, a Bitcoin-backed stablecoin, has rapidly gained traction in the crypto ecosystem, emerging as the second-largest collateralized debt position (CDP) project globally, with a market size of $84.10 million. This significant milestone places USDa as a major player in the decentralized finance (DeFi) lending sector.
According to Avalon Labs, USDa’s 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 overcollateralized nature, utilizing Bitcoin (BTC) as collateral, which runs on LayerZero’s cross-chain technology. Launched on November 11, USDa, often referred to as “Bitcoin Money,” combines both DeFi and centralized finance (CeFi) environments, offering institutional liquidity and broadening its ecosystem.
USDa’s total value locked (TVL) across multiple blockchain grids, including BNB Chain, Ethereum, and Taiko, currently stands at $483 million, marking a 0.65% increase in the past 30 days. The project holds $63.25 million in liquidity, with an average annual percentage yield (APY) borrow rate of 1.37%, showing promising growth. With 95 holders and a total TVL exceeding $700 million, USDa is positioning itself as a formidable contender in the CDP space.
Despite USDa’s rapid growth, it is still dwarfed by MakerDAO, the leader in the CDP market. MakerDAO, with a $4.576 billion market cap and over 4.576 billion DAI in circulation, has maintained dominance in the DeFi space using Ethereum-based collateral. In comparison, USDa’s market cap stands at $235.74 million, with a circulating supply of 235.5 million USDa.
The DeFi lending market, where USDa plays a significant role, continues to evolve as a decentralized alternative to traditional banking systems. In 2022, the DeFi lending protocol market was valued at $13.61 billion, with roughly $25 billion in outstanding debt, according to the Bank of International Settlements. As the global stablecoin market is poised to grow at a 46% compound annual growth rate (CAGR) over the next six years, USDa’s integration with various blockchain ecosystems and its competitive borrowing features are likely to make it a prominent player in the space.
The rise of USDa underscores the growing importance of Bitcoin-backed stablecoins and their potential to disrupt both the DeFi and traditional financial sectors. As it continues to develop and expand its offerings, USDa is set to challenge the status quo in the CDP market.
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