Ethena Labs’ ‘synthetic dollar’ USDe stablecoin has achieved an impressive feat by reaching a supply worth $3 billion, a mere four months after its public launch. This significant growth marks the fastest a USD asset has attained such a milestone, as noted by the founder of the protocol.
Also recognized as a ‘synthetic dollar’, the USDe stablecoin sustains its value through arbitrage mechanisms and a yield-earning cash-and-carry trade. Following the stablecoin’s public debut in February, it has now amassed a supply of $3 billion tokens.
Since April 5, the stablecoin supply has expanded by $1 billion, from $2 billion. Now, USDe is poised to challenge DAI for the title of the largest decentralized or algorithmic stablecoin. However, an additional $2 billion in supply would be necessary to secure this position.
Regarding total stablecoin supply, USDe ranks fourth, holding a 3.3% share in the overall stablecoin market. This market share is significantly smaller compared to the leader, Tether, which commands a dominant 57% of the market.
However, parallels have been drawn between the swift ascent of USDe and Terraform Lab’s UST stablecoin. Yet, each token operates different mechanisms, with USDe’s yield generated from a cash-and-carry trade and staking profits that are subsequently divided among holders. Recently, popular crypto trading platform Bybit incorporated the USDe stablecoin, delivering spot trading pairs with Ethereum and Bitcoin.
April witnessed USDe begin to airdrop its governance token, ENA. Although initially achieving an all-time high price of $1.52, its market capitalization now stands at $1.3 billion, with the token’s price currently sitting at about $0.91.