Yield-bearing stablecoin market grows 15x faster than overall market

The market for yield-bearing stablecoins, which pay interest to holders, has grown 15 times faster than the overall stablecoin market over the past six months, according to an analysis by Messari. The blockchain research and analytics firm stated in a recent report that this rapid expansion was driven by market cap growth in Circle's USYC (+198%), Paxos's USDG (+114%), and Ondo Finance's USDY (+91%). By contrast, the total market capitalization for all stablecoins grew by 9% during the same period. Messari concluded that the highest-yielding stablecoins are beginning to function similarly to money market funds (MMFs) and bank deposits.