Ethena Labs is decentralized. Its stablecoin, USDe, is too. Ethena’s USDe is growing rapidly, and its recent footprint is capturing the attention of crypto investors and market analysts.
Over the course of just one week, USDe’s supply has increased by an impressive $300 million—in no small part due to improving funding rates across DeFi. This is an actual narrative shift.
Many view this latest uptick in USDe supply as the harbinger of yet another explosive growth phase for Ethena’s ecosystem token, ENA—one that they see having the potential to mirror its meteoric rise in late 2024.
A Flashback to October 2024: Explosive Growth and a 5x Rally
The previous occasion on which USDe experienced such fast expansion was in October 2024, when its circulating supply shot up by $4 billion in just under two months. That remarkable growth period far outstripped inflows into all Bitcoin and Ethereum spot ETFs combined and only strengthened Ethena Labs’ reputation as a rising force in decentralized finance.
For eight weeks, ENA–Ethena’s native governance and incentive token–had a wild ride of appreciation in value. From a meager $0.25, starting point, the token shot up nearly 5 times in value to an all-time high of $1.25. Not only was the price movement exhilarating for investors already on board, but it also had the effect of attracting some big institutional and retail investor names to the project.
🚨 $ENA is about to explode, mark my words
USDe, $ENA stablecoin, just increased $300m in supply in the last week as funding rates have improved.
Why is this a big deal? It’s showing us the next period of big growth for @ethena_labs just like last time
The last time USDe… pic.twitter.com/JOTRso0gQF
— Not Telling (@nottellingyou73) May 18, 2025
At present, the USDe supply is growing fast again, and the overall money funding conditions are looking quite nice. Seems like we are set up for a repeat performance of the last major ENA uptrend in summer 2020. A lot of investors are already placing their bets to take advantage of this setup. I personally have quite a nice position in ENA, and I plan to add quite a bit more soon.
Strategic Partnerships and New Blockchain Push the Narrative Forward
Bolstering the overall positive sentiment surrounding Ethena Labs is a rally of partnerships and numerous impactful developments that aim to strengthen its long-term value proposition.
Most prominently, a recent announcement from Ethena reveals a partnership with Telegram to integrate USDe directly into its ecosystem; this partnership dramatically widens the potential user base for the stablecoin. With Telegram’s global reach—counting hundreds of millions of active users—this partnership could turn out to be a major driver of actual, real-world adoption of USDe that goes beyond DeFi-centric applications.
Simultaneously, Ethena Labs is set to introduce a new blockchain called Converge, which is designed with a particular emphasis on real-world asset (RWA) tokenization. This venture is being carried out in concert with Securitize, an RWA platform that puts compliance first and is backed by none other than BlackRock. The partnership emphasizes Ethena’s commitment to connecting traditional finance with decentralized protocols, a storyline that is gathering more and more currency across the Web3 ecosystem.
USDe—and, by extension, ENA—could become central players in on-chain finance if Converge sees a successful introduction. Converge could serve as a major catalyst for staking USDe, in equal parts utility tokens and governance tokens.
ENA: Is This the Beginning of Another Parabolic Run?
The supply of stablecoins is growing, and the conditions of the market are bright, and then there are those high-profile partnerships. Put all this together, and you have the present setup for ENA, which is looking more and more like the last rally it had, and which some in the crypto community are calling an “easy call” for a next breakout token.
Aside from the imagineering upside, Ethena Labs is putting forth a larger vision—one that melds DeFi tools of the kind that can scale with the traditional financial infrastructure. In that world, the three projects we just mentioned would play a part. Ethena would serve users a yield-bearing, censorship-resistant stablecoin in USDe, while it and the two other projects would build out a regulated real-world asset (RWA) ecosystem—in other words, something that might get us to a usable crypto future faster than the un-usable present.
Although no investment is without risk, Ethena Labs and ENA seem to be moving with momentum into a critical growth phase. If historical performance is any guide, the next few weeks could bring transformative changes both for the token and for the DeFi ecosystem that is closely observing from the sidelines.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/ethena-labs-usde-sees-300m-supply-surge-as-market-eyes-ena-for-next-major-rally/