Justin Sun’s Stabilcoin USDD Launches on Ethereum: Will It Shake the Market?

Updated
September 10, 2025
Gambar Justin Sun’s Stabilcoin USDD Launches on Ethereum: Will It Shake the Market?

Jakarta, Pintu News – Stabilcoin USDD, created by Justin Sun, has officially launched on the Ethereum network, marking a major step in its multi-chain expansion. With the total supply of stabilcoins in the market reaching $165 billion, USDD offers a price stability module that allows direct exchange with Tether and USD Coin .

The launch was followed by an audit by CertiK, guaranteeing security and transparency in its operations. Since September 8, the Ethereum USDD contract has been active, attracting users with the lure of up to 12% annual earnings.

The airdrop campaign that began the day after launch provides an additional incentive for Ethereum users, with the earning rate decreasing as the number of users increases. This feature is expected to increase USDD adoption among investors and Ethereum network users.

Market Stability and Confidence in USDD

USDD is designed as an algorithmic stablecoin that is over 100% guaranteed, with the current guarantee ratio reaching 204.5%. While the majority of that guarantee is backed by TRON , Sun’s August withdrawal of $726 million worth of Bitcoin raises questions about USDD’s long-term stability.

This stablecoin has already seen its value drop below $1.00 during the Terra crisis in 2022 and again during the FTX crash, showing vulnerability in extreme market situations. The plan to introduce sUSDD, an interest-earning version, shows an attempt to increase added value for USDD holders.

However, USDD’s long-term success will largely depend on its ability to maintain price stability and build trust among investors. With the market already dominated by big players like Tether, USDD will have to demonstrate a significant edge to compete.

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Challenges and Opportunities in the Stabilcoin Market

pyusd stablecoin
Source: U Today

Although Tether still dominates the market with daily transactions on TRON reaching $23-25 billion, competition in the stabilcoin market is intensifying. MetaMask, Paxos, and other tokens such as EURC and PYUSD are showing significant growth, driving innovation and diversification in product offerings.

In addition, new regulatory frameworks in the European Union and the United States, as well as in Asia, open up opportunities for regulated stablecoins to attract institutional adoption. With a market capitalization of only around $450-$460 million, USDD still has a long way to go to achieve significant scale.

Although liquidity on Ethereum has increased thanks to PSM, market depth and collateral diversification are still areas that need to be strengthened. Effective integration strategies and collateral diversification could be key to strengthening USDD’s position in the global market.

Conclusion: The Future of USDD in a Stablecoin Market

With significant challenges and intense competition, the future of USDD in the global stabilcoin market will largely depend on the adaptation and innovation strategies taken.

Feature enhancement, collateral diversification, and integration in real economic use cases will determine whether USDD can survive and thrive amidst the dominance of big players like Tether. Market watchers will keep a close eye on the development of USDD as an indicator of the ever-changing dynamics of the stabilcoin market.

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