Stablecoin is a very profitable business, which already found its product market fit in the ecosystem. Millions of people around the emerging markets use stablecoins to access USD, which was not possible before.

With the rising stablecoin market primarily consisting of USD stablecoins, there is an emerging belief that non-USD stablecoins can follow their success. However, I disagree with this view, contending that non-USD stablecoins are constrained in their potential. In this article, I will explain my rationale for the limited prospects of non-USD stablecoins.

The realm of stablecoins continues to undergo significant evolution, marked by the constant introduction of innovative stablecoin projects. Among these emerging concepts, Treasury Bill-backed stablecoins have gained considerable attention within the stablecoin ecosystem.

The network effect, a phenomenon in which the value of a product increases as more people use it, stands as one of the most critical factors for the success of a startup. In the realm of consumer apps within the cryptocurrency space, particularly for stablecoins, the significance of the network effect cannot be overstated.

Yield-bearing stablecoins are considered the next revolution in the continuously evolving stablecoin ecosystem. Over the past year, numerous projects have emerged, dedicated to developing yield-bearing stablecoin products.

2023 has proven to be a remarkable year for builders exploring the potential of new DeFi primitives. During this period, one of the most intriguing developments has been the rise of Liquid Staking Derivates (LSD) protocols and, as anticipated, the subsequent rise of protocols built upon LSD projects, known as LSDfi.

Stablecoins remain a central topic of discussion within the ecosystem due to their significant alignment with market demand. As a result, both developers and enthusiasts have been actively exploring avenues to create a stablecoin that can exert a lasting influence on the ecosystem. However, the progress in this endeavor has been relatively modest thus far.

Stablecoins are one of the most exciting innovations that the crypto ecosystem offers. By offering stability of value to its holders, stablecoins have achieved product-market fit in the volatile crypto ecosystem. It may be one of the first products that the DeFi ecosystem exports to traditional finance.