Coinspeaker USDe Market Cap Jumps amid Spot ETH ETF Approval Speculation
The market capitalization of Ethena USD (USDe) shot up significantly amid spot Ethereum exchange-traded fund (ETF) approval speculations as multiple asset management firms eagerly await the United States Securities and Exchange Commission (SEC) decision on their applications.
According to recent data, the market cap of USDe skyrocketed above $2.6 billion in the past 24 hours, marking a 2.87% surge followed by a 19.10% increase in trading volume, which at the time of writing stands at $163.8 million.
Since the beginning of the year, the market cap of USDe has achieved significant gains, rising from $315 million to $2.6 billion. The adoption of USDe has been on the rise, which is evident from the rise in market capitalization of the stablecoin backed in a 1:1 ratio with the United States dollar.
It is also important to note that currently $2.6 billion worth of USDe tokens are in circulation, a staggering number amid the surge in popularity of Ether (ETH) owing to the optimistic chances of approval of a spot ETH ETF.
Ethena is a synthetic dollar protocol that has been created on the top of the Ethereum blockchain and seeks to “provide a crypto-native solution for money not reliant on traditional banking system infrastructure, alongside a globally accessible dollar denominated savings instrument – the ‘Internet Bond’,” as per the details available on CoinMarketCap.
Additionally, USDe is the “first censorship resistant, scalable, and stable crypto-native solution for money achieved by delta-hedging staked Ethereum collateral” and is the fastest growing stablecoin since its debut earlier this year in the history of digital assets, as stated by Ethena.
USDe aims to rival the likes of Tether’s USDT and Circle’s USDC, the top two stablecoins by market capitalization, with market capitalizations of $111 billion and $32 billion, respectively.
A major reason for the surge in popularity of USDe is the staking yield provided by Ethena, which currently stands at 32.7% as per its website. The project is backed by Dragonfly Capital, BitMEX co-founder Arthur Hayes, Binance Labs, OKX Ventures, and Bybit, which recently announced the integration with Ethena USD.
Aave to Add USDe to USDe to Aave V3
Aave, a decentralized crypto lending platform, recently voted to add USDe to Aave V3 following the successful onboarding of sUSDe (staked USDe) on Ethereum.
“Ethena’s synthetic dollar, USDe, provides a stable crypto-native solution for a cash and carry structured product. The staked version of USDe, sUSDe, earns yield from the protocol and has high potential for strong borrow demand, which was already onboarded successfully into Aave,” said the proposal.
This could further boost the adoption of USDe since Aave has a total value locked (TVL) of $13 billion with a 21.90% surge in the past week, as per DefiLlama. Moreover, Ethena also announced that it would leverage Bitcoin (BTC) to enhance the stability of USDe, attracting more users.
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USDe Market Cap Jumps amid Spot ETH ETF Approval Speculation
