Ethena’s $9.5B USDe could now challenge USDC’s number 2 spot by 2027
The post Ethena’s $9.5B USDe could now challenge USDC’s number 2 spot by 2027 appeared on BitcoinEthereumNews.com. USDe’s market cap surged from approximately $5.33 billion on July 17 to over $9.3 billion by August 4, marking a nearly 75% increase and propelling it into the number three slot among all stablecoins, behind only USDT and USDC. The sudden rise has positioned Ethena’s synthetic dollar among top-tier stablecoins while also raising questions about whether a delta-neutral, crypto-native asset can sustain such momentum in a market historically dominated by fiat-backed coins. The jump in market cap reflects more than just investor enthusiasm. Over the span of less than 30 days, more than $3.1 billion in new USDe was minted. This influx correlates with positive funding rates in the perpetual futures markets and a sharp uptick in attention around Ethena’s ENA token buyback program. Rapid ascent of USDe The speed of USDe’s growth stands out in the stablecoin landscape, drawing parallels to USDC’s ascent, which crossed the $10 billion threshold in March 2021. At ~$9.25 billion, USDe is now at a similar scale to that milestone. USDC market cap growth (Source: CoinMarketCap) Unlike incumbents USDT and USDC, which are backed by traditional banking instruments like T-bills, USDe operates fully on-chain via a synthetic structure. It is underpinned by a delta-neutral strategy that combines long spot positions in digital assets such as BTC, ETH, or SOL with offsetting perpetual short positions. The resulting basis or funding yield is passed on to stakers who convert USDe into sUSDe. Ethena has pitched this model as offering attractive returns and sidestepping traditional financial intermediaries. As the project’s founder, Guy Young, has noted, USDe aims to offer a risk profile distinct from fiat-tethered stablecoins. The basis trade mechanism that powers USDe’s yield has proven lucrative in bullish or volatile market conditions, where perpetual funding spreads widen in favor of short sellers. This dynamic was a…
The post Ethena’s $9.5B USDe could now challenge USDC’s number 2 spot by 2027 appeared on BitcoinEthereumNews.com.
USDe’s market cap surged from approximately $5.33 billion on July 17 to over $9.3 billion by August 4, marking a nearly 75% increase and propelling it into the number three slot among all stablecoins, behind only USDT and USDC. The sudden rise has positioned Ethena’s synthetic dollar among top-tier stablecoins while also raising questions about whether a delta-neutral, crypto-native asset can sustain such momentum in a market historically dominated by fiat-backed coins. The jump in market cap reflects more than just investor enthusiasm. Over the span of less than 30 days, more than $3.1 billion in new USDe was minted. This influx correlates with positive funding rates in the perpetual futures markets and a sharp uptick in attention around Ethena’s ENA token buyback program. Rapid ascent of USDe The speed of USDe’s growth stands out in the stablecoin landscape, drawing parallels to USDC’s ascent, which crossed the $10 billion threshold in March 2021. At ~$9.25 billion, USDe is now at a similar scale to that milestone. USDC market cap growth (Source: CoinMarketCap) Unlike incumbents USDT and USDC, which are backed by traditional banking instruments like T-bills, USDe operates fully on-chain via a synthetic structure. It is underpinned by a delta-neutral strategy that combines long spot positions in digital assets such as BTC, ETH, or SOL with offsetting perpetual short positions. The resulting basis or funding yield is passed on to stakers who convert USDe into sUSDe. Ethena has pitched this model as offering attractive returns and sidestepping traditional financial intermediaries. As the project’s founder, Guy Young, has noted, USDe aims to offer a risk profile distinct from fiat-tethered stablecoins. The basis trade mechanism that powers USDe’s yield has proven lucrative in bullish or volatile market conditions, where perpetual funding spreads widen in favor of short sellers. This dynamic was a…
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