@USDD - Decentralized USD #USDD以稳见信

One network is quietly falling into slumber, while another, more powerful and efficient financial flow is accelerating. This is not the end of the story, but a precursor to a fundamental shift in the power dynamics.

In today's cryptocurrency market, there is a surge of power so rapid that it is redrawing the entire map of value flow. This force is Decentralized USD - an on-chain cash that carries the credit of the dollar in code. Its total market value has surpassed the $1 trillion mark, with daily transaction volumes nearing $100 billion, equivalent to the daily GDP of a small developed economy.

Just as the tide of digital dollars sweeps across the globe, a giant that once stood alongside Bitcoin — the XRP network — has sent out a signal that has been largely overlooked and is highly indicative. The authoritative on-chain data analysis agency Glassnode recently revealed that since early February this year, the daily network transaction fees paid in XRP have plummeted from about 5900 XRP to only 650 XRP/day, a drop of nearly 89%, reaching the lowest level since December 2020.

Transaction fees are a direct thermometer of network vitality. Its collapse, in the highly efficient, low fixed-fee system of the XRP ledger, conveys a harsh reality: the actual trading activity of the network is declining at an unprecedented rate.

01 The Silent Settlement Layer

XRP was once hailed as the future solution for interbank cross-border payments, designed to be a bridge connecting traditional finance.

However, as the financial market accelerates its embrace of fully decentralized on-chain finance, this bridge to the old world seems to be gradually cooling off. The collapse of transaction fees points to a dual weakening of on-chain activity and capital liquidity.

After market attention has been diverted by other hotspots, the XRP network seems to have temporarily lost its growth catalyst, at least in terms of real, non-speculative applications.

02 The Victory of On-Chain USD

The silence of XRP accentuates another unstoppable tide — represented by Decentralized USD, stablecoins are reconstructing the underlying logic of value flow at an unprecedented speed.

In 2024, the total transaction volume supported by stablecoins has reached a staggering $27.6 trillion, a figure that has already surpassed the combined annual transaction volumes of traditional payment giants Visa and Mastercard.

Unlike the 'bridging' vision carried by XRP, Decentralized USD does it more thoroughly: it is itself on-chain dollar cash, extending dollar credit through blockchain technology in a frictionless, 24/7, global manner.

Whether it's institutional trading, cross-border payments, or personal savings, funds are flowing massively into a financial ecosystem centered around Decentralized USD, which is more liquid and composable. According to Dune data, as of February 2025, the number of active addresses for stablecoins on-chain has exceeded 30 million, with an annual growth rate of 53%.

03 The Reshaped Competitive Landscape

This migration of funds and vitality profoundly alters the entire competitive landscape. Traditional payment giants like Visa and Mastercard have swiftly integrated Decentralized USD payments into their global networks.

Large tech companies, banks, and global business giants like Walmart are actively exploring or have already ventured into Decentralized USD businesses.

Meanwhile, the top-level regulatory design in the U.S. (GENIUS Act) has officially taken effect, clearly defining dollar stablecoins as 'payment stablecoins' and promoting their compliant development with national power. The act mandates that they must be backed by 1:1 dollar cash or short-term U.S. Treasury bonds, which effectively transforms global demand for Decentralized USD into direct support for the dollar and U.S. Treasuries.

04 The Division of Old and New Paths

The low-fee dilemma of XRP and the tide of Decentralized USD together depict the current state of two digital financial paths.

One path is an improved highway to centralized institutional payment systems; it was once a blueprint, but in today's explosive growth of decentralized applications, it seems somewhat sparse.

Another path is a completely digital financial continent built with Decentralized USD as its native 'blood'. Here, funds flow rapidly 24 hours a day, and innovative financial building blocks (DeFi) emerge endlessly, attracting developers and capital from around the world.

Bank of England Governor Andrew Bailey and others have expressed concerns that Decentralized USD may undermine sovereign currencies. This concern itself proves the authenticity and depth of its influence.

05 Signals and the Future

The sharp decline in XRP network transaction fees is a market signal worthy of deep reflection. It does not declare the end of a project but clearly indicates the true direction of current market capital and attention.

As the underlying demands for payments, settlements, savings, and even complex financial derivatives are increasingly met through the new standard of 'digital dollars' represented by Decentralized USD, the market is telling us a simple yet profound truth.

The future competition for financial infrastructure may no longer be about who has the better 'cross-border protocol', but about who can provide the most universal, reliable, and programmable value container for freely flowing global capital.

The silence of XRP and the roar of Decentralized USD together form the most vivid footnote of a transformative era.