Ethena Labs USDe stablecoin, also known as a ‘synthetic dollar’ that maintains its peg through arbitrage mechanisms and yield-returning cash and carry transactions, has reached a token supply of $3 billion just four months after its public launch in February.
The supply of stablecoins has increased by $1 billion since April 5, when it last crossed the $2 billion threshold. According to data from The Block, it is now on track to challenge DAI as the largest algorithmic or decentralized stablecoin. But to get there we need to add $2 billion in supply.
In terms of overall stablecoin supply, USDe ranks fourth in the overall stablecoin market with a 3.3% share, well below market leader Tether’s dominant 57% position.
USDe’s meteoric rise is reminiscent of Terraform Labs’ UST stablecoin, but each token’s mechanics are different. USDe’s returns come from cash and carry transactions, while staking profits are shared with holders. The stablecoin was recently integrated with Bybit, which offers spot trading pairs with Ethereum and Bitcoin.
USDe also recently began airdropping its governance token, ENA, in April. According to The Block’s pricing page, the token’s market capitalization has reached $1.3 billion, down from its all-time high of $1.52 to about $0.91 as of Saturday night.
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