Non-Dollar Stablecoins Struggle to Gain Market Share

The stablecoin sector has seen a surge in the number of non-dollar pegged assets being launched, but despite this, they collectively account for less than 0.5% of the total market.

The dominance of USD stablecoins is not a coincidence, as most crypto trading pairs and DeFi lending pools quote prices in dollars. This makes it difficult for non-dollar stablecoins to gain traction, even if they offer lower conversion costs for local users.

Liquidity begets more liquidity, creating a feedback loop that is hard to break. Non-dollar issuers also face higher compliance costs per unit of volume, which discourages market makers and institutions from integrating them.