ETHENA USDe surpasses $5 billion in market capitalization

Ethena's stablecoin USDe reaches $5 billion market cap, surpassing DAI to become the 3rd largest stablecoin in the market, behind only USDT and USDC. ENA price increases 40% in 7 days

12/7/20242 min read

Ethena's stablecoin USDe reaches $5 billion market cap, surpassing DAI to become the 3rd largest stablecoin in the market, behind only USDT and USDC. ENA price increased by 40% in 7 days.

Appearing only in 2024, Ethena has quickly affirmed its role and position on the global crypto map.

On December 6, 10 months since the project launched, Ethena is pleased to announce that the USDe supply has reached $5 billion.

Ethena is a Liquid Staking Derivative (LSD) protocol built on the Ethereum network, aiming to provide a decentralized stablecoin solution that is independent of the traditional banking system. The project allows users to increase their profits through the issuance of a synthetic dollar called USDe .

Ethena's main product is the ERC-20 stablecoin USDe, collateralized by Liquid Staking Tokens (LST) such as stETH. USDe ensures stable value and generates profits for holders through the Delta-Hedging strategy . Users can mint USDe by collateralizing LST and use USDe to participate in DeFi activities or earn profits through Internet Bond.

The amount of ETH collected will be used as collateral for the stablecoin USDe. Users holding the locked version of this stablecoin, sUSDe, will receive both ETH staking interest and funding interest from the ETH short position on the CEX exchange.

Therefore, the total supply of USDe more or less represents the amount of assets that users have pledged to Ethereum. With a market capitalization of 5 billion USDe, USDe has made its name as the 3rd most valuable stablecoin in the market, only behind USDT and USDC.

According to a recent announcement on X by Ethena Labs, users are currently receiving a 27% APY when staking USDe, a relatively stable income.

In April this year, ENA price reached its ATH at $1.52. In contrast, in September ENA price dropped rapidly to $0.1951. However, ENA is currently hovering around $1.08 , up about 453.56% from its September low.

In just 10 short months of development, Ethena now has over 323k users and has just approved a revenue sharing proposal for ENA holders.

Data from Coingecko

Source: token terminal as of 12/02/2024

Source: token terminal as of 12/02/2024

Thanks to the increased utility and the overall market momentum, ENA price has increased by nearly 70% in the past 14 days, or 40% in just 7 days.

Currently 1 ENA is priced around 1 USD, however it is still down more than 30% since the ATH set in April.