Interest-Bearing Stablecoins Challenge USDT and USDC Dominance

Interest-bearing stablecoins are experiencing significant growth, putting pressure on traditional non-yield stablecoins like USDT and USDC in 2025. Spark Protocol’s USDS has seen remarkable gains, reaching a market value of $8 billion, signaling a shift in user preferences towards assets offering both stability and potential returns. 30% market share is held by Pendle with $3 billion in TVL, demonstrating the rapid adoption of yield-bearing stablecoins within the overall market.