Why is USDD currently the most undervalued stablecoin in the market?
Imagine that you are in a protracted digital financial marathon. The leader USDT is like a heavy truck loaded with cargo; although massive, its black-box operating engine always raises concerns about fuel quality. USDC is like a school bus that strictly adheres to traffic regulations, stable yet deeply constrained by traditional bank oversight. On one side of the track, USDD resembles a submarine that has been repeatedly questioned in the storm, yet quietly completed an armor upgrade. People are always waiting for it to sink, but they ignore that it has already submerged into the deep sea, building a solid defense system based on real asset anchoring.
On this day in December 2025, when we revisit the stablecoin landscape, USDD's value is severely underestimated, essentially because the market still clings to the stereotype of its initial algorithmic attributes and overlooks its epic evolution from elastic supply to over-collateralization.
First, USDD has evolved from an imaginary concept to a deeply embedded structure of reinforced concrete. Early algorithmic stablecoins were prone to death spirals due to a lack of underlying support, but the current USDD resembles a pawnshop of the digital age. According to the latest on-chain real-time data, USDD's collateralization rate has long maintained above 200%. This means that for every circulating USDD, there is more than twice the value in hard currency backing it, including BTC, TRX, and a large reserve of stablecoins. This over-collateralization mechanism is similar to DAI, but in terms of capital efficiency and liquidity depth, USDD relies on the TRON network, the world's largest stablecoin circulation network, which provides a natural advantage for cost reduction and efficiency enhancement.
Second, it is the best vehicle for real-world assets (RWA) to enter the crypto space. By 2025, RWA will no longer be a concept but the cornerstone of DeFi. USDD plays the role of a silent navigator in this wave. While other protocols are still struggling with compliance access and on-chain mapping, USDD has already completed a deep integration with government bond yields and on-chain payment gateways through the TRON ecosystem. USDD is not just an accounting unit; it has evolved into a container for interest-bearing assets. In the current macro environment, assets that can provide both on-chain transparency and stable yield capability are extremely scarce, and USDD is precisely the value pit that the market has overlooked.
Third, the moat of liquidity is severely underestimated. The vitality of stablecoins does not depend on how beautifully the code is written, but on what it can purchase. The TRON network currently accounts for over 50% of the global USDT circulation, and this vast payment network provides USDD with nearly unlimited conversion scenarios. In regions with unstable fiat currencies, such as South America and Southeast Asia, USDD is becoming a settlement tool for local small and medium-sized enterprises in cross-border trade. This genuine demand that penetrates from the bottom up is a moat that no marketing strategy can replicate. It is not a specimen in a laboratory but a living currency that has successfully completed the cycle of the real economy.
However, as a rational researcher, we must also face its challenges. USDD's current governance model still carries a strong ecological centralization color; although the management transparency of its reserve assets is much higher than that of traditional centralized stablecoins, there is still room for improvement compared to purely on-chain automated protocols. Additionally, the market's reliance on the personal color of the founder of the TRON ecosystem also gives USDD a unique premium or discount.
For investors and DeFi participants, it is recommended to focus on three key indicators at the operational level. First, the real-time fluctuations in the collateralization ratio, which is the lifeline of safety; second, the liquidity depth of USDD on major decentralized exchanges like Curve and SunPump, which determines its ability to resist risks in extreme market conditions; finally, its collaborative progress in the RWA field, which will be the rocket fuel supporting its market value's secondary explosion.
Looking back from the point in 2025, the stablecoin market is undergoing a baptism of truth-seeking. USDD is undervalued because it has chosen the most challenging path of transparency and over-collateralization in the noise, while the market often ignores the already repaired breakwater until the next tsunami arrives. In a diversified stablecoin asset allocation, USDD should not just be an alternative but an undervalued strategic pivot against deflation and risks.
In the future, when the specter of algorithmic stablecoins finally dissipates, what will truly remain are those value carriers that can cross the boundaries of on-chain and off-chain and possess real-world support. The current undervaluation of USDD may be the last entry opportunity for keen observers.
This article is an independent analysis and does not constitute investment advice.
