Stablecoins are quietly becoming the backbone of HyperEVM, with nearly half a billion dollars already minted and deployed across protocols. Now, with a native USDH on the horizon, the big question is whether this could ignite the next wave of DeFi growth.
The Native Stablecoin Advantage
Current Stablecoin Landscape
The numbers tell an interesting story. HyperEVM already hosts around $449M in circulating stablecoins, with USDF0 leading at ~$193M, followed by hbUSDT at ~$104M, USDE at ~$63M, thBILL at ~$54M, and USDXL at ~$13M. But here's the catch: most of this money isn't actually working in DeFi yet.
Total stablecoin supply: ~$449M across HyperEVM
USDF0: $193M (largest supply but minimal DeFi usage)
hbUSDT: $104M (bridged Tether, solid presence)
USDE: $63M (dominates actual DeFi TVL despite smaller supply)
When you look at where these stablecoins are actually being used in DeFi protocols, USDE punches way above its weight, dominating TVL in the low-to-mid $200M range. Meanwhile, USDF0's massive supply mostly sits idle, suggesting there's a huge opportunity to activate dormant liquidity.
What USDH Could Change
A native stablecoin could be the catalyst HyperEVM needs. First, it would create unified liquidity and routing by becoming the default quote asset on DEXs and perps, which naturally tightens spreads and improves execution for everyone. Second, if proposals for $HYPE buybacks and liquidity mining through USDH pairs get implemented, protocols could direct rewards exactly where depth is needed most.
There's also the collateral efficiency angle. Money markets could standardize on one home-chain stable, reducing fragmentation and improving risk parameters while attracting larger lenders and market-makers. Plus, the more venues that settle in USDH, the stronger the network effects become for wallets, bridges, and exchanges - it's a virtuous cycle.
Risks Worth Watching
Of course, this isn't risk-free. USDH's design, backing, and redemption mechanics will be absolutely crucial for maintaining its peg and managing counterparty risk. As TVL grows, so does the attack surface for smart contracts and bridges. And if HyperEVM ends up with too many competing stablecoins, it could actually dilute liquidity rather than concentrate it.
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HYPE Coin News: Will TVL "Go Up" on HyperEVM?
Stablecoins are quietly becoming the backbone of HyperEVM, with nearly half a billion dollars already minted and deployed across protocols. Now, with a native USDH on the horizon, the big question is whether this could ignite the next wave of DeFi growth.
The Native Stablecoin Advantage
Current Stablecoin Landscape
The numbers tell an interesting story. HyperEVM already hosts around $449M in circulating stablecoins, with USDF0 leading at ~$193M, followed by hbUSDT at ~$104M, USDE at ~$63M, thBILL at ~$54M, and USDXL at ~$13M. But here's the catch: most of this money isn't actually working in DeFi yet.
When you look at where these stablecoins are actually being used in DeFi protocols, USDE punches way above its weight, dominating TVL in the low-to-mid $200M range. Meanwhile, USDF0's massive supply mostly sits idle, suggesting there's a huge opportunity to activate dormant liquidity.
What USDH Could Change
A native stablecoin could be the catalyst HyperEVM needs. First, it would create unified liquidity and routing by becoming the default quote asset on DEXs and perps, which naturally tightens spreads and improves execution for everyone. Second, if proposals for $HYPE buybacks and liquidity mining through USDH pairs get implemented, protocols could direct rewards exactly where depth is needed most.
There's also the collateral efficiency angle. Money markets could standardize on one home-chain stable, reducing fragmentation and improving risk parameters while attracting larger lenders and market-makers. Plus, the more venues that settle in USDH, the stronger the network effects become for wallets, bridges, and exchanges - it's a virtuous cycle.
Risks Worth Watching
Of course, this isn't risk-free. USDH's design, backing, and redemption mechanics will be absolutely crucial for maintaining its peg and managing counterparty risk. As TVL grows, so does the attack surface for smart contracts and bridges. And if HyperEVM ends up with too many competing stablecoins, it could actually dilute liquidity rather than concentrate it.