Key Points
- Ethena USD (USDe) market cap increases significantly due to speculation around spot Ethereum ETF approval.
- USDe’s market cap has risen from $315 million to $2.6 billion since the start of the year.
The market capitalization of Ethena USD (USDe) has seen a substantial increase. This is largely due to rumors surrounding the approval of a spot Ethereum exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC).
Several asset management firms are eagerly anticipating the SEC’s decision on their applications. Recent data reveals that USDe’s market cap has soared above $2.6 billion in the past 24 hours, marking a 2.87% surge. This was followed by a 19.10% increase in trading volume, which currently stands at $163.8 million.
USDe’s Market Cap Growth
Since the beginning of the year, USDe’s market cap has seen significant growth, rising from $315 million to $2.6 billion. The adoption of USDe has been increasing, as evidenced by the rise in the stablecoin’s market capitalization. This stablecoin is backed in a 1:1 ratio with the United States dollar.
Currently, $2.6 billion worth of USDe tokens are in circulation. This staggering number comes amid the surge in popularity of Ether (ETH) due to the optimistic chances of approval of a spot ETH ETF.
Ethena is a synthetic dollar protocol created on the Ethereum blockchain. It aims to provide a crypto-native solution for money not reliant on traditional banking system infrastructure. It also offers a globally accessible dollar-denominated savings instrument – the ‘Internet Bond’.
USDe’s Features and Backers
USDe is also the first censorship-resistant, scalable, and stable crypto-native solution for money. It achieves this by delta-hedging staked Ethereum collateral. Since its debut earlier this year, it has been the fastest-growing stablecoin in the history of digital assets.
USDe aims to compete with Tether’s USDT and Circle’s USDC, the top two stablecoins by market capitalization. These have market capitalizations of $111 billion and $32 billion, respectively.
A major factor contributing to USDe’s popularity is the staking yield provided by Ethena, which currently stands at 32.7%. The project is backed by Dragonfly Capital, BitMEX co-founder Arthur Hayes, Binance Labs, OKX Ventures, and Bybit, which recently announced the integration with Ethena USD.
USDe’s Integration with Aave
Aave, a decentralized crypto lending platform, recently voted to add USDe to Aave V3. This follows the successful onboarding of sUSDe (staked USDe) on Ethereum.
USDe, Ethena’s synthetic dollar, provides a stable crypto-native solution for a cash and carry structured product. The staked version of USDe, sUSDe, earns yield from the protocol and has high potential for strong borrow demand.
This could further boost the adoption of USDe. Aave has a total value locked (TVL) of $13 billion with a 21.90% surge in the past week. Moreover, Ethena also announced that it would leverage Bitcoin (BTC) to enhance the stability of USDe, attracting more users.
