Ethena’s USDe Reaches $3 Billion Supply in Four Months
Ethena's synthetic dollar, USDe, has achieved a $3 billion supply within just four months of its launch, showcasing the increasing interest in stablecoins within the DeFi world.
USDe, a stablecoin linked to the dollar and developed by Ethena Labs, has rapidly grown in the DeFi ecosystem. This stablecoin, which earns returns by staking ETH and managing derivatives, is built on the Ethereum blockchain and is fully backed on-chain.
By June 2, USDe’s market value had reached around $3.02 billion, surpassing First Digital’s FDUSD, which has a $2.9 billion supply. This made USDe the fourth-largest stablecoin. Ethena’s founder, Guy Young, pointed out that USDe is the fastest USD asset in crypto history to reach this level.
According to EtherScan, USDe is held by about 13,235 unique addresses. Ethena’s smart contract holds the largest share with 1.22 billion USDe, representing over 40% of the total supply, while the LP staking address holds 511.2 million USDe, or 16.8%. Other significant holders include Pendle Finance, Morpho, and Zircuit.
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Despite this rapid growth, there are concerns about USDe’s stability. DeFi expert Andre Cronje warned that USDe might face issues similar to TerraUSD (UST) due to its reliance on perpetual contracts and yield-based collateral. CryptoQuant founder Ki Young Ju also questioned its ability to maintain a stable strategy during market downturns.
Nonetheless, the project continues to attract attention. Currently, Ethena offers a 33.5% annual percentage yield (APY) for USDe, drawing in many DeFi enthusiasts. While 200,200 users have already joined the platform, new participants still need an invite code.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
