TL;DR
- Ethena USDe jumped to the third-largest stablecoin spot with a $9.3 billion market cap after a 75% supply surge in one month, overtaking FDUSD and Dai and climbing to sixth place among DeFi protocols by TVL.
- The GENIUS Act’s passage on July 18 sparked a yield-bearing stablecoin boom led by USDe’s $2.7 billion supply increase, highlighting growing investor appetite even as USDC and USDT maintain dominant positions.
- Ethena’s native ENA token rallied 15% in a single day, trading at $0.6163 with a $3.91 billion market cap, and bullish technicals suggest potential upside toward $0.79, and possibly $1, if momentum sustains.
Ethena‘s USDe stablecoin has skyrocketed to the third-largest stablecoin in market capitalization, now valued at $9.3 billion following a remarkable 75% increase in supply within a single month. This swift rise has allowed USDe to surpass rivals such as FDUSD and Dai, positioning it just behind the giants USDT and USDC. The growth coincides with USDe’s rise to the sixth-largest DeFi protocol by total value locked (TVL), signaling a broader shift in investor confidence and adoption.
The GENIUS Act and Yield-Bearing Boom
The recent passage of the GENIUS Act on July 18 appears to have catalyzed a wave of interest in yield-bearing stablecoins. Data shows USDe led the pack with a $2.7 billion supply increase, narrowly outpacing USDT’s $2.4 billion growth. Although the momentum of USDe is clear, surpassing USDC and USDT continues to be a significant challenge. USDC holds a $64.1 billion market cap, while USDT towers at $163.8 billion, requiring USDe to grow nearly 6x and 17x, respectively, to claim the top spot.
ENA Token Fuels the Fire
The Ethena ecosystem’s native token, ENA, is also experiencing bullish activity. Despite reports of Arthur Hayes selling 7.76 million ENA, the token surged 15% in a single day, trading at $0.6163 with a market cap of $3.91 billion. Technical indicators show ENA maintaining strength above $0.50, with a “Golden Cross” between its 50-day and 200-day EMAs suggesting short-term growth. If ENA breaks past $0.66 and sustains momentum, analysts predict a potential climb to $0.79, and possibly $1 by late September.
What Lies Ahead for Ethena?
Ethena’s rapid rise has sparked speculation about its long-term potential. With strong technical signals and growing investor interest, the project appears poised for further expansion. However, market volatility remains a key risk. Although USDe’s supremacy is not yet a reality, its path is undeniable. If current trends hold, Ethena could redefine the stablecoin landscape and challenge the status quo in crypto finance.
