Ethena USDe Stablecoin Supply Surpasses $3B

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The stablecoin known as Ethena Labs USDe, also referred to as a “synthetic dollar”, has achieved a supply of $3 billion tokens in just four months since its public launch in February.

This represents a growth of $1 billion since April 5 when it reached $2 billion in supply. USDe is on its way to potentially surpassing DAI as the largest algorithmic or decentralized stablecoin, but will need to add another $2 billion in supply to achieve this.

Currently, it has a 3.3% share of the stablecoin market, far behind Tether’s dominant position with 57% market share. While some have drawn comparisons between USDe and Terraform Labs’s UST stablecoin due to their rapid rise, the two tokens operate differently.

USDe’s yield is generated from a cash-and-carry trade and staking revenue, which is then shared with holders. Recently, USDe was integrated with Bybit, allowing for spot trading with Ethereum and Bitcoin.