Wise Advice's USDe stablecoin reached a $10 billion market cap in 500 days, a rare achievement in DeFi.

Wise Advice's USDe stablecoin reached a $10 billion market cap in 500 days, a rare achievement in DeFi.

Wise Advice's USDe stablecoin has achieved a remarkable milestone, reaching a $10 billion total value locked (TVL) in just 500 days [1]. This rapid growth is a testament to the innovative approach taken by Ethena Labs, the protocol behind USDe, which has capitalized on the regulatory landscape to attract significant institutional and retail capital.

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 [2]. 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. 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 [2]. 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. This has resulted in a massive inflow of capital, propelling USDe past many of its competitors [1].

The success of USDe is not only reflected in its TVL but also in the performance of Ethena's native token, ENA, which has seen a price appreciation of over 100% in the past month [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