Ethena's 'synthetic dollar' outbids $2 billion two months after public launch
Ethena's USDe stablecoin, also known as “internet bond” and “synthetic dollar,” has surpassed the $2 billion offering threshold just seven weeks after its public unveiling.
Ethena Labs confirmed market capitalization, positioning it as the fifth-largest stablecoin by market capitalization, and now represents 1.25% of the entire $160 billion stablecoin market, as reported by the data dashboard. The Block.
Tether's USDT remains the leading stablecoin, with a market cap of $112 billion or 70% market share.
Circle's $USDC is second with $35 billion (22%)
MakerDAO's DAI ranks third, with $5 billion (3%)
$FDUSD from First Digital in fourth place with a market capitalization of $2.5 billion (1.5%).
What is Ethena USDe stablecoin?
Unlike conventional stablecoins, USDe employs a unique mechanism that does not rely on direct asset or fiat backing. Instead, it includes derivatives hedging against collateral positions and a mint-and-redeem arbitrage system designed to maintain its peg to the US dollar.
It also leverages a cash-and-carry trade that generates a return, which is then shared with stablecoin holders. For example, it uses strategies such as staking ETH holdings (collected from USDe stablecoin minters) with Ethereum validators and simultaneously shorting the same amount of ethereum futures.
