Solana
Ethena’s USDe matches Solana’s stable market cap of over $3 billion
The market cap of USDe has reached an all-time high, equaling the market cap of all stablecoins on Solana.
Posted June 3, 2024 at 11:31 AM EST.
Ethena Labs’ “synthetic dollar” USDe has reached a market capitalization of $3.06 billion, after rising 33% from $2.3 billion over the past month, and is now the fourth largest largest stablecoin after USDT, USDC and DAI, according to data by DefiLlama. Interestingly, USDe has now equaled the total market capitalization of all stablecoins on the Solana blockchain, just four months after its public launch in February.
Moreover, as note by Ethena founder Guy Young on Token terminal.
Ethena’s 33% increase over the past month can be attributed to very strong yield. Currently, USDe yields 33.5%, which is significantly higher than its competitors. Circle USDC yields 6.6% on Aave V3 and Maker’s sDAI The APR is 8%. On Solana, USDC deposited into a lending protocol Kamino yields 14%.
Learn more: Ethereum ETF Hype Drives $100M Growth in Ethena’s USDe Over Last Three Days
There is also a points program that will be linked to the second part of the Ethena airdrop when USDe reaches a market cap of $5 billion, or September 1, whichever comes first. Users earn points by holding USDe, staking it, or depositing it into various DeFi liquidity pools. Points programs in crypto are reward systems that incentivize users to engage in various activities within the ecosystem.
Ethena’s governance token ENA was up 13.5% last month and is trading at $0.95.
What is USDe?
USDe is a “synthetic dollar” created by Ethena Labs and aims to provide a censorship-resistant, stable and scalable solution for the digital asset market. It also aims to generate yield by staking positions on ETH and delta hedging derivatives.
Learn more: What is the Synethic Dollar USDe of Ethena? A beginner’s guide
While some have compared USDe to Terras’ UST stablecoin, others argue that Ethena’s model is different because the peg is maintained by completely separate mechanisms.
Learn more about why people have concerns about USDe: As Ethena’s USDe quickly reaches $2 billion in market cap, some wonder if it’s as risky as Terra’s UST