Token Terminal, a leading analytics platform in the crypto space, recently sparked a conversation with a tweet questioning whether a new wave of stablecoin issuers could truly challenge the dominance of Tether (USDT) and Circle (USDC). These established players have long held the throne in the stablecoin market, providing liquidity and stability for traders, including those in the volatile world of meme tokens. But with fresh entrants like USDG from the Global Dollar Network, the landscape might be shifting.

The tweet features a compelling chart showing the outstanding supply of USDG on both Ethereum and Solana blockchains. Here's a look at that data visualization:

As you can see, USDG's supply has surged dramatically, especially on Solana (highlighted in green), climbing to over $500 million by mid-2025. This growth reflects increasing adoption, driven by partnerships and integrations that make it easier for users to access and use the stablecoin across DeFi protocols and trading platforms.

Breaking Down the Challengers

The tweet lists five promising newcomers, each bringing unique features to the table. Let's unpack them one by one, explaining what they offer and why they might pose a threat to the incumbents.

• USDG from Global Dollar Network: Issued by Paxos, USDG is a fully redeemable, US dollar-backed stablecoin designed for global adoption. Launched in late 2024, it's already expanded to markets like the EU and integrated with major players such as Mastercard. Its network (globaldollar.com) rewards participants and supports seamless transactions on Solana and Ethereum. For meme token enthusiasts, this means more efficient liquidity pools on Solana, where many popular memes thrive, potentially reducing fees and improving trading experiences.

• AUSD from Agora: AUSD is another dollar-pegged stablecoin focused on internet markets and business applications. Backed 1:1 by US dollars and built for low-cost transactions, it's gained traction through integrations like on Injective and even powered a historic US IPO funded via stablecoins. Check out Agora's platform (agora.finance) for more. In the meme space, AUSD's gas efficiency could make it a go-to for high-volume trades, helping traders hold value without the volatility of native tokens.

• M from M0: M0 is an open platform enabling customized, application-specific stablecoins, with $M as its native dollar-backed token. It emphasizes programmability and federation, allowing qualified entities to mint stables while keeping reserves secure. Recently raising $40 million in funding, M0 (m0.org) is positioning itself as infrastructure for the next gen of digital dollars. For blockchain practitioners diving into memes, this programmability opens doors to innovative DeFi strategies, like yield-bearing stables paired with meme liquidity.

• USDN from Noble: Built on the Cosmos ecosystem, USDN is a yield-bearing stablecoin that pays holders for simply holding it. Leveraging the M0 protocol, it directs yield to users and partners, making it composable across chains. Launched in early 2025, Noble (noble.xyz) optimizes for interoperability, which is huge for cross-chain meme trading. Imagine earning passive income on your stable holdings while waiting for the next meme pump—USDN makes that possible.

• mUSD from MetaMask: As the first stablecoin native to a self-custodial wallet, mUSD integrates directly into MetaMask's ecosystem for easy on-ramps, swaps, and spending via debit cards. Partnering with Bridge and M0, it's set to launch across Ethereum and Linea, enhancing Web3 usability (metamask.io). For meme token users, this seamless integration could streamline swapping in and out of positions, reducing friction in fast-paced markets.

Why This Matters for Meme Tokens and Blockchain Enthusiasts

Stablecoins are the backbone of crypto trading, providing a safe harbor amid the wild swings of meme tokens like those on Solana or Ethereum. With Tether and Circle controlling over 80% of the market, any viable challengers could introduce more competition, leading to better yields, lower fees, and innovative features like built-in yield or programmability. For meme insiders, this translates to enhanced liquidity on DEXes, easier cross-chain movements, and potentially more rewarding ways to park funds between trades.

These new issuers are betting on compliance, technology, and partnerships to chip away at the duopoly. While it's early days—USDT and USDC boast supplies in the tens of billions—the rapid growth shown in USDG's chart suggests momentum is building. Keep an eye on adoption metrics and regulatory developments, as they could determine if these challengers become kings or remain pretenders.

If you're building or trading in the meme token space, exploring these stables could give you an edge. Head over to Token Terminal's tweet (x.com/tokenterminal/status/1963195721521287675) for the original discussion and join the conversation.