tl;dr
Ethena’s synthetic dollar stablecoin, USDe, has seen significant market growth, with its market cap reaching $9.3 billion after a 75% increase in the past month and a 24% rise in one week. Since July 18, USDe's supply grew by about $2.73 billion, surpassing major stablecoins like Tether and USDS. Th...
Ethena’s synthetic dollar stablecoin, USDe, has experienced remarkable market growth in recent weeks, with its market cap reaching $9.3 billion. Over the past month alone, USDe’s value surged by 75%, including a weekly increase of 24%, signaling strong investor interest and confidence.
Since July 18, USDe has recorded the largest supply increase among major stablecoins, adding approximately $2.73 billion, according to Artemis data. This growth outpaced Tether’s $2.47 billion and First Digital’s USDS, which rose by about $1 billion. Other competitors such as USD Falcon and PayPal’s PYUSD saw moderate increases, while USDC experienced the largest supply decline, dropping nearly $800 million.
The surge coincides with renewed attention on Ethena following the July 21 launch of Stablecoin X, a long-term treasury arm aimed at allocating capital across the ecosystem. Upon its announcement, Stablecoin X committed to purchasing $260 million worth of ENA tokens, approximately 8% of the total supply. This strategic move is complemented by the 11% annualized yield offered on staked USDe (sUSDe), which has notably boosted minting activity.
Importantly, the Ethena Foundation retains the authority to block any ENA sales by Stablecoin X, ensuring that purchased tokens are reinvested or used for infrastructure improvements. According to Ethena founder Guy Young, USDe’s supply growth in the past 20 days has outpaced gains seen across all BTC ETFs and BlackRock’s ETHA ETF.
This surge in demand for USDe has positively impacted ENA, Ethena’s native token. Despite a brief dip to $0.51 over the weekend, ENA rebounded to around $0.62 and surged over 140% in the past month. Its market cap climbed from $8.4 billion at the end of July to an all-time high exceeding $9.4 billion by August 4, indicating robust market interest and momentum in the token’s recovery.