Ethena’s USDe Hits $3 Billion Supply in Four Months, Surpasses FDUSD

Ethenas’ synthetic dollar, USDe, has quickly reached a $3 billion supply just four months after its launch.

This achievement highlights the growing demand and confidence in stablecoins within the decentralized finance ( DeFi ) ecosystem.

Ethena’s Synthetic Dollar Breaks $3 Billion Barrier

USDe is a dollar-pegged stablecoin created by Ethena Labs . It generates returns by staking ETH and managing derivatives. Built on the Ethereum blockchain, USDE is fully backed on-chain and can integrate with other blockchain protocols.

As of June 2, USDE’s market valuation reached approximately $3.02 billion, surpassing First Digital’s FDUSD with its $2.9 billion supply. This milestone has made USDE the fourth-largest stablecoin. Ethena’s founder, Guy Young, noted that USDe became the fastest USD asset in crypto history to reach this mark.

According to EtherScan , USDE is held by approximately 13,235 unique addresses. Ethena’s smart contract holds the largest share with 1.22 billion USDE, over 40% of the total supply, while the LP staking address holds 511.2 million USDE, or 16.8%. Other significant holders include Pendle Finance, Morpho, and Zircuit.

Read more: What Is Ethena Protocol and its USDe Synthetic Dollar?

However, Ethena’s rapid growth has raised concerns. DeFi expert Andre Cronje warned that USDe might face a collapse similar to TerraUSD (UST) due to its use of perpetual contracts and reliance on yield-based collateral. CryptoQuant founder Ki Young Ju echoed this opinion, questioning its ability to maintain a delta-neutral strategy during bear markets.

Despite the criticism, the project keeps gaining traction. At the time of writing, Ethena offers a 33.5% annual percentage yield ( APY ) for USDe, attracting many DeFi enthusiasts. While 200,200 users already joined the platform, new participants still need an inviting code.

Read more: How To Use Ethena Finance To Stake USDe

In conclusion, USDe’s quick growth to a $3 billion supply within a short period stresses the increasing demand for innovative stablecoin solutions. Ethenas’ success demonstrates the viability of synthetic stablecoins and sets a new benchmark in the DeFi space, signaling future adoption​.