- Ethena’s USDe stablecoin has achieved a key milestone.
- The stablecoin has joined the top five pack.
- The development comes hardly two months after its public launch.
Ethena’s “synthetic dollar” USDe has become the fifth-largest stablecoin in the crypto industry after crossing a key market capitalization threshold, CoinGecko data shows.
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Launched in February this year, USDe primes itself as an unconventional stablecoin employing a unique mechanism independent of direct fiat or asset backing. Instead, the stablecoin leverages derivative hedging against collateral positions and other mechanisms to maintain its $1 peg.
USDe Supply Crosses $2 Billion Market Cap
According to the data, USDe surpassed the $2 billion supply threshold only seven weeks after the stablecoin’s public launch, a milestone confirmed by the Ethena Labs team on Friday.
Following the development, USDe now stands as the fifth-largest stablecoin in the industry by market capitalization, with the $2 billion accounting for nearly 1.25% of the entire $160 billion stablecoin market.
Tether’s USDT still dominates the stablecoin arena, with 70% of the market share or a $110 billion market cap. Circle’s USDC, MakerDAO’s DAI, and First Digital’s FDUSD rank second, third, and fourth, respectively, with market caps of $35 billion, $5 billion, and $2.5 billion.
The development comes after Ethena Labs added Bitcoin (BTC) as collateral to mint USDe on April 4, noting that the addition would enable the stablecoin to “scale significantly” as traders embrace the world’s largest crypto asset by market cap.
In addition to BTC, users can also deposit U.S. dollars, Ethereum, or “liquid staking tokens” as collateral to mint the stablecoin.
Read how Ethena debuted ENA with a massive airdrop:
Ethena Labs Opens 750M ENA Airdrop Claims as Token Goes Live
Stay updated on how USDT’s launch on Celo blockchain enhances crypto adoption:
How Tether’s USDT on Celo Drives Mainstream Crypto Adoption
