Following its listing on Binance, Ethena's stablecoin USDe reached a significant milestone by surpassing $13 billion in circulation.
USDe's Popularity and Attractive Yields
Notably, the outstanding yields of Ethena's USDe have been one of the drivers for its growth. With rates hovering around 10%, USDe provides returns that surpass traditional safe investments. These yields, along with access to trading markets on Binance, have significantly elevated interest among both retail and institutional investors.
Institutional Support and Ecosystem Growth
The rapid rise in popularity of Ethena's USDe is bolstered by institutional support through fundraising rounds and treasury alliances. In the past three months, the total value locked in the ecosystem has surged from $5.5 billion in July to over $13 billion in September, reflecting investor readiness for innovative models that blend synthetic strategies with secured backing.
Regulatory Climate's Influence on Growth
The timing of USDe's rise coincides with a more favorable regulatory environment. The passage of the GENIUS Act this summer established clearer norms for stablecoin issuance, aiding new issuers in gaining market share. However, high yields raise concerns about long-term sustainability.
The ascent of Ethena's USDe to $13 billion highlights how rapidly innovation can transform the stablecoin sector. Supported by yields and liquidity, it has carved a significant niche among market leaders.
