Ethena's USDe Stablecoin Surges to $10B Market Cap in 500 Days, Outpacing USDT and USDC.

Ethena's USDe stablecoin has reached a $10B market cap in 500 days, outpacing USDT and USDC. The protocol has hit $10B in Total Value Locked, ranking 6th among DeFi projects. USDe has surpassed $5.7B in transactions across multiple blockchains, with adoption accelerating since the GENIUS ACT passed. ETHENA's design emphasizes speed and interoperability, making it a prime example of DeFi's growth curve steepening with Ethereum's momentum.

Ethena's USDe stablecoin has achieved a remarkable milestone, reaching a $10 billion market cap in just 500 days. This rapid growth positions USDe as the fastest-growing stablecoin in history, outpacing established competitors such as USDT and USDC. The protocol's Total Value Locked (TVL) has surpassed $10 billion, ranking it sixth among DeFi projects [1].

The growth of USDe coincides with the passage of the GENIUS Act, the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which was enacted on July 18, 2025. This act imposes strict new rules on stablecoin issuers, including 1:1 reserve requirements in low-risk assets, robust federal oversight for large issuers, and strong consumer protections [2]. Notably, the act prohibits regulated issuers from paying yields on stablecoins, a provision that has significantly realigned the stablecoin market [2].

The ban on yield payments has caused a shift in capital flow, with much of it moving to USDe due to its DeFi yield offerings. Ethena Labs has been able to attract this demand by providing yield opportunities via decentralized finance (DeFi) mechanisms, which fall outside the restrictions placed on federally supervised issuers [2]. This has resulted in a massive inflow of capital, propelling USDe past many of its competitors [1].

USDe has also seen significant adoption, with transactions exceeding $5.7 billion across multiple blockchains. The ETHENA token, the native token of Ethena Labs, has experienced a price appreciation of over 100% in the past month, reflecting the broader DeFi rally [1]. This growth highlights the broader DeFi rally, where protocols are experiencing heightened participation and liquidity as users leverage yield-generating strategies across multiple platforms [3].

However, the rapid growth of USDe and Ethena has also raised concerns about potential risks, such as a "triangular TVL bubble" involving Ethena, Pendle, and Aave, where users exploit cross-platform leverage to amplify borrowing power [4]. Despite these concerns, Ethena's performance remains supported by strong fundamentals, particularly in risk management and yield optimization [4].

The $10 billion TVL milestone achieved by USDe is a significant achievement in the rapidly evolving DeFi landscape. It underscores the potential for regulatory shifts to create opportunities for innovative, DeFi-native protocols to capture yield-hungry capital [1]. As Ethena continues to attract capital and expand its product suite, it is well-positioned to maintain its place among the top DeFi protocols.

References:
[1] https://cryptoslate.com/ethena-labs-usde-overtakes-rivals-as-fastest-growing-stablecoin-reaching-10b-in-tvl-in-just-500-days/
[2] https://www.ainvest.com/news/ethena-surpasses-10-billion-tvl-defi-growth-accelerates-2508/
[3] https://www.theblockbeats.info/en/flash/307004
[4] https://www.kucoin.com/blog/en-kucoin-ventures-weekly-report-policy-and-capital-fuel-rally-401-k-green-light-sparks-market-eth-retakes-4000-as-defi-pioneers-new-rate-derivatives