Ethena Hits $500M Cumulative Revenue
Ethena Labs announced that its Ethena protocol has generated over $500 million in cumulative revenue, marking a major milestone for the synthetic stablecoin sector. The company revealed on X that protocol revenue reached $13.4 million last week, while the circulating supply of its flagship stablecoin Ethena USDe (USDe) soared to an all-time high of $11.7 billion.
Synthetic Stablecoins Gain Market Share
According to DeFiLlama, Ethena USDe currently ranks as the third-largest stablecoin by market capitalization and the largest synthetic stablecoin globally. In the past month alone, its market cap surged 86.6%, reflecting increasing investor confidence in synthetic assets as a store of value.
Other synthetic stablecoins are also gaining traction:
- Sky Dollar (USDS) – the upgraded version of DAI, powering the Sky ecosystem, saw its market cap rise 14%.
- Falcon USD (USDf) – created by Falcon Finance, jumped 89.4% in market capitalization.
These gains underscore a growing shift toward synthetic stablecoins as an alternative to traditional asset-backed counterparts.
Why Synthetic Stablecoins Are Growing
Synthetic stablecoins like USDe offer unique advantages, such as:
Lower transaction costs due to the absence of physical collateral
Efficient cross-chain interoperability
However, they also carry risks, including instability and potential depegging, which could result in significant investor losses.
Ethena Labs attributes its growth to robust inflows into USDe and a delta-neutral hedging reserve model that has amplified returns under favorable market conditions.
Stablecoin Market Up 4% in August
The broader stablecoin market grew 4% in August, climbing from $266.6 billion to $277.8 billion, according to DefiLlama. This growth coincides with increased regulatory clarity in the United States following President Donald Trump’s signing of the GENIUS Act on July 18, 2025.
At the Wyoming Blockchain Symposium, Federal Reserve Governor Christopher Waller stated that the GENIUS Act could accelerate stablecoin adoption, strengthening the U.S. dollar’s role in global finance.
Meanwhile, China is reportedly considering allowing yuan-backed stablecoins, signaling a potential policy shift that could reshape the global stablecoin market.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.