A little-known stablecoin has rocketed into the big leagues. Ethena’s USDe, a synthetic dollar backed by an on-chain trading strategy, has ballooned from $5.3 billion in mid-July to more than $9.3 billion as of August 4.
That 75% jump in under three weeks has pushed it past decentralized competitors like USDS and into third place globally, trailing only USDT and USDC.
The secret behind its rapid rise lies in its design. USDe maintains its peg by holding spot crypto positions — often BTC, ETH, or SOL — while taking equal short positions in perpetual futures markets. This “delta-neutral” setup generates a yield for stakers when funding rates favor short sellers, a condition that dominated much of July.
That yield, which briefly topped 60% annualized before settling below 5%, has attracted billions in fresh capital. However, the model’s dependence on perpetual market conditions leaves it vulnerable if funding flips negative or liquidity dries up.
USDe’s ascent has also had an unexpected side effect: its hedging process drives new demand for USDT, indirectly boosting the market leader it’s competing against. Analysts say if its growth rate holds steady, USDe could challenge USDC’s position within two years — though history has shown that algorithmic and synthetic stablecoins can falter as quickly as they rise.
For now, USDe stands as the fastest-growing stablecoin of 2025, but its long-term survival will depend on whether it can deliver consistent yields without breaking its peg.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/usde-stablecoin-explodes-to-9-3b-overtakes-rivals-to-claim-third-spot/