Yala’s Bitcoin-backed stablecoin YU experienced an “attempted attack” causing it to drop to $0.2046. The team confirmed the incident and is investigating with security partners. The attacker minted 120 million YU tokens on Polygon, selling 7.71 million for 7.7 million USDC. YU’s market cap is $119 million with $340,000 in USDC liquidity.

The stablecoin market is close to reaching $300 billion, with CoinMarketCap reporting $300 billion, while CoinGecko and DefiLlama show $291 billion and $289 billion, respectively. Stablecoin growth has been driven by Tether USDt, Circle’s USDC, and Ethena Labs’ yield-bearing stablecoin USDe. Mainstream adoption is still pending.

YU plummeted to $0.2046 after the attack but bounced back to $0.917 before settling around $0.7869. Stablecoin market growth has been significant, surpassing $200 billion in late 2024. Axelar’s head of growth, Chris Robins, sees $300 billion as an early milestone, citing Tether USDt, USDC, and USDe as key contributors.

Read more at Cointelegraph: Yala’s Bitcoin-Backed YU Stablecoin Struggles to Reclaim Peg After Exploit