Sky's USDS stablecoin surges past $2B in circulation

Sky, the decentralised finance initiative formerly known as MakerDAO, has reported that its newly launched stablecoin, USDS (CRYPTO:USDS), has reached $2 billion in circulation.

This achievement marks a significant milestone for USDS, which has recorded a remarkable 99% growth in supply over the past month.

Currently ranking among the top ten stablecoins, USDS has experienced the most substantial increase in supply during this period.

As of now, there are approximately 2.02 billion USDS in circulation, with 1.23 billion resulting from upgrades involving DAI swaps.

Despite USDS's rapid ascent, DAI also saw growth, with its supply increasing by 4.49% to reach 4.719 billion coins.

While DAI is available across multiple blockchains, USDS is currently deployed on Ethereum (CRYPTO:ETH), Base, and Solana (CRYPTO:SOL).

With its recent success, USDS has climbed to the fifth position by market capitalisation, just behind DAI.

A notable feature of USDS is that holders can earn an annual percentage yield (APY) on their holdings, currently advertised at 12.50%.

However, it’s important to note that the Sky Savings Rate (SSR) is variable and determined by the decentralised governance of the Sky Ecosystem on the Ethereum blockchain.

Together, the combined circulating supplies of DAI and USDS total approximately $6.83 billion.

As of January 18, 2025, Sky reports a total value locked (TVL) of about $14.5 billion.

Meanwhile, other stablecoins like usual usd (USD0), Ethena’s USDE, and USDX Money’s USDX are also making strides in the market.

The growth of Sky’s USDS highlights its strengthening position within the decentralised finance sector and suggests a growing interest in stablecoins among investors.