• USDe hits $3 billion supply mark in four months, sets record.

  • The ‘synthetic dollar’ accumulated $1 billion since April 5.

  • The USDe is on track to challenge DAI as the largest algorithmic or decentralized stablecoin.

Ethena Labs’ USDe stablecoin has set a record by becoming the first of its category of cryptocurrency to reach the $3 billion supply mark only four months after it launched. Also known as ‘synthetic dollar,’ the USDe launched in February 2024 and maintains its peg through arbitrage mechanics and a yield-returning cash-and-carry trade.

Available reports show that the USDe’s supply crossed the $2 billion threshold on April 5. Since then, the stablecoin has accumulated an extra $1 billion in supply, putting it on track to challenge DAI as the largest algorithmic or decentralized stablecoin. This assumption is based on the synthetic dollar’s growth rate, knowing it would need to attract an extra $2 billion supply to complete with DAI.

Notably, the USDe’s impressive growth puts it in the fourth position in the overall stablecoin market, posting a 3.3% market share. However, this figure remains pale compared to the flagship stablecoin Tether, which leads the stablecoins market with a 57% dominance.

Conservative crypto users consider USDe’s growth a reminder of the infamous Terraform Lab’s UST stablecoin. However, the former boasts a different token mechanism. The USDe’s yield comes from a cash-and-carry trade and staking revenue, which is then shared with holders. It is also worth noting that Bybit, the renowned cryptocurrency exchange, recently integrated USDe, providing spot trading pairs with Ethereum and Bitcoin.

Another noteworthy event is the project’s recent airdrop launch, promoting awareness and subsequent adoption. USDe started airdropping its governance token, ENA, in April, coinciding with the surge in market supply. The stablecoin’s market capitalization has reached $1.98 billion at the time of writing, according to CoinmarketCap’s data, with the token trading for $0.994, reflecting a 1.99% pullback in the last 24 hours.

The post USDe Hits $3 Billion Market Supply Just Four Months After Launching appeared first on Coin Edition.