Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • CASINO
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • CASINO
Crypto Flexs
Home»TRADING NEWS»Why is USDe market cap growing so fast?
TRADING NEWS

Why is USDe market cap growing so fast?

By Crypto FlexsFebruary 29, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Why is USDe market cap growing so fast?
Share
Facebook Twitter LinkedIn Pinterest Email

Ethena Lab’s stablecoin USDe has seen its market capitalization soar to $500 million as nearly half of its tokens are put into staking, increasing the project’s resilience.

Amid cryptocurrency strength, Bitcoin, which has a market capitalization of $62,000, has surged nearly 40% over the past month. Similarly, Ethereum worth $3,402 also increased by 47% during the same period.

USDe experiences massive growth in market capitalization

In a post on X (formerly Twitter), on-chain data researcher Tom Wan informed his 9,585 followers that USDe had reached a market capitalization of $500 million. He also highlighted the significant returns that investors can earn by storing tokens in the project, increasing liquidity.

“With an insane fund-to-play % (average of 39%), Ethena is paying a 24% return on sUSDe.”

Wan presented a graph showing the rapid growth of USDe market capitalization since the end of November 2023, with staked tokens gradually stabilizing around 44%.

Ethena Labs USDe market capitalization and staking ratio. Source: X/Tom Wan

However, Wan explained that the insurance fund reserves would increase tenfold, causing confusion among other X users on social media.

“The good news is that we can increase our insurance fund reserves from $1 million to $10 million.”

Meanwhile, one

Read more: 8 Best Cryptocurrency Platforms for Futures Copy Trading

Wan stated that staking returns will decrease proportionally depending on the funding ratio.

“Depending on the funding ratio, the staking return will fall accordingly. The insurance fund attempts to mitigate funding risk and will be triggered if the funding rate becomes negative and greater than the stETH yield.”

Stablecoins make a comeback after a long downturn

In 2023, the stablecoin market suffered a major crash. Last October, BeInCrypto reported that stablecoins had suffered an 18-month decline.

However, the stablecoin market has been slowly recovering since then. It has grown from a market capitalization of approximately $124 billion in November 2023 to its long-term high of $140 billion today. The last time the stablecoin market capitalization was at this level was December 2022.

Read more: 10 Best Cryptocurrency Exchanges and Apps for Beginners in 2024

The total stablecoin market cap is back to $140 billion.  Source: DefiLlama
The total stablecoin market cap is back to $140 billion. Source: DefiLlama

Many people expect stablecoin regulations to go into effect in the United States this year.

On January 15, Circle Chief Executive Jeremy Allaire said it was “very likely” that stablecoin regulations would be passed in the U.S. in 2024.

disclaimer

All information contained on our website is published in good faith and for general information purposes only. Any action you take upon the information on our website is strictly at your own risk.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

A new era of encryption? A Doj official says that a developer with a good intention is not a goal.

August 22, 2025

Since the leakage is not over, the price of Stellar (XLM) is faced with a fall.

August 21, 2025

Despite the ETF leakage, Bitcoin is steadily at $ 115K as whales purchase

August 19, 2025
Add A Comment

Comments are closed.

Recent Posts

Builders, Investors, And Developers Meet Again To Shape The Web Space

August 23, 2025

Bitcoin News Today: Ether (ETH) is 5K $ 5K and BTC Eyes is recorded as Powell Sparks Rally. DAT transaction risk: Be careful with asset managers

August 23, 2025

Bitcoin analysts bet on $ 200K after hints of Fed.

August 23, 2025

Ether ETF is a comeback of $ 280 million, with bitcoin leaked stripes hit on the 5th.

August 22, 2025

Will Cardano (ADA) step back and push the bear back low?

August 22, 2025

Partner relationship with SBI HOLDINGS to distribute RLUSD Stablecoin

August 22, 2025

MetaWin Announces “MetaWin Create” – Free AI Tools For All MetaWinners NFT Holders

August 22, 2025

A new era of encryption? A Doj official says that a developer with a good intention is not a goal.

August 22, 2025

ESCAPE Presale Live On Ethereum With $280K Raised, Hacken Audited And SolidProof KYC Verified

August 21, 2025

WhalePlay Beta Launch: Next-Level Social IGaming Platform

August 21, 2025

Hyra Network Wins Prestigious Chairman’s Award 2025 At WITSA Global AI Summit

August 21, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Builders, Investors, And Developers Meet Again To Shape The Web Space

August 23, 2025

Bitcoin News Today: Ether (ETH) is 5K $ 5K and BTC Eyes is recorded as Powell Sparks Rally. DAT transaction risk: Be careful with asset managers

August 23, 2025

Bitcoin analysts bet on $ 200K after hints of Fed.

August 23, 2025
Most Popular

Bitfinex Mobile App Version 7.0.0 Introduces New Features and Fixes

August 15, 2024

Here’s why market experts say Ethereum’s scaling process is unstoppable

August 17, 2024

The altcoin market is on the move and a golden cross is imminent

November 24, 2023
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.