💥Ethena’s USDe Surpassing FDUSD After Hitting $3 Billion Supply in Just Four Months🚀
Ethena's synthetic dollar, USDe, has skyrocketed to a $3 billion supply within just four months of its launch, showcasing the increasing demand for stablecoins in the decentralized finance (DeFi) sector.
USDe, a dollar-pegged stablecoin from Ethena Labs, has reached a market valuation of approximately $3.02 billion, surpassing First Digital’s FDUSD, which stands at $2.9 billion. This achievement makes USDe the fourth-largest stablecoin. Ethena’s founder, Guy Young, proudly noted that USDe became the fastest USD asset in crypto history to reach this milestone.
What is USDe?
USDe is built on the Ethereum blockchain and is fully backed on-chain. It generates returns by staking ETH and managing derivatives and can integrate with other blockchain protocols. 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 (over 40% of the total supply), while the LP staking address holds 511.2 million USDe (16.8%). Significant holders also include Pendle Finance, Morpho, and Zircuit.
Concerns and Criticisms
Despite its rapid growth, some experts have raised concerns. DeFi expert Andre Cronje warned that USDe might face a collapse similar to TerraUSD (UST) due to its use of perpetual contracts and reliance on yield-based collateral. CryptoQuant founder Ki Young Ju also questioned USDe’s ability to maintain a delta-neutral strategy during bear markets.
Despite these concerns, Ethena continues to attract DeFi enthusiasts. Offering a 33.5% annual percentage yield (APY) for USDe, the platform has already gained 200,200 users, with new participants needing an invite code to join.
USDe’s rapid rise to a $3 billion supply underscores the growing demand for innovative stablecoin solutions. Ethena's success highlights the potential for synthetic stablecoins and sets a new standard in the DeFi space, signaling a promising future for wider adoption.
