Ethena’s USDe Stablecoin Skyrockets to $3B Supply in Just 4 Months

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Ethena Labs’ USDe stablecoin, also referred to as a ‘synthetic dollar’ has achieved a significant milestone by surpassing a $3 billion supply. This major milestone is coming in just four months after its launch in February. This makes USDe the fastest USD stablecoin or asset to reach the $3 billion milestone in crypto history.

USDe Rapid Growth and Market Position

There was a staggering supply of USDe which saw it increase by $1 billion since April 5, when it previously crossed the $2 billion mark. This rapid growth positions USDe to potentially challenge DAI as the leading algorithmic or decentralized stablecoin. However, to achieve that feat, it will need to double its supply to surpass DAI, based on data from The Block.

Currently, USDe holds the fourth-largest share of the overall stablecoin market, with a 3.3% market share. This is significantly lower than Tether, the market leader, which commands a dominant 57% share.

Meanwhile, the stablecoin market attained its highest capitalization following eight successive months of growth. The market cap hit $161 billion, a 0.63% rise in the figures from the start of the month. The new height marks a significant recovery for stablecoins following a long spell of decline.

Distinct Mechanics and Recent Integrations

Unlike Terraform Labs’ UST stablecoin, USDe employs different mechanics to maintain its peg and provide yields. USDe’s yield is generated through a cash-and-carry trade and staking revenue, which is then distributed to holders.

Recently, USDe was integrated with digital currency trading platform Bybit, offering spot trading pairs with Ethereum and Bitcoin, further enhancing its market presence.

Notably, TheCoinRise Media tipped it as one of the three lesser-known altcoins to attain massive heights earlier this month.

Governance Token Airdrop

In addition to its growing supply, USDe initiated an airdrop of its governance token, ENA, in April. Since then, ENA has reached a market capitalization of $1.3 billion, according to The Block’s price page. However, the token’s value has declined from an all-time high of $1.52 to approximately $0.91.

Ethena Labs’ USDe stablecoin continues to make significant strides in the stablecoin market, with its innovative mechanics and growing integrations highlighting its potential for further growth and broader market impact.

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