Ethena’s synthetic stablecoin, USDe, has seen a remarkable surge in circulation, surpassing $13 billion within just one day of being listed on Binance. According to DeFiLlama data, the supply of USDe increased by nearly 2% in a 24-hour period, reaching approximately $13.2 billion. This growth trajectory has been consistent over the past month, with the protocol adding over $3 billion to its total supply after crossing the $10 billion mark in August. USDe now stands as the third-largest stablecoin in the industry, commanding roughly 5% of the $287 billion stablecoin market.
The rapid expansion of USDe can be attributed to a combination of factors that have been working in its favor. The recent surge in interest in stablecoins can be linked to the signing of the GENIUS Act by former President Donald Trump, which provided a regulatory framework for these assets. Additionally, Ethena’s attractive yields of around 10% have attracted investors seeking higher returns compared to traditional US Treasuries.
The listing of USDe on Binance has further propelled its growth, presenting a significant opportunity for the stablecoin. Guy Young, the founder of Ethena Labs, highlighted Binance’s strategic decision to support an external project like USDe after conducting thorough due diligence. With Binance boasting $130 billion in assets and $40 billion in stablecoins, the integration has opened up a massive distribution channel for USDe.
Young expressed optimism about the potential for USDe adoption on Binance, drawing parallels with its success on Bybit, where it currently accounts for 12% of total dollar balances. He anticipates that USDe could potentially reach over $4 billion in circulation on Binance, given its historical penetration on other centralized exchanges.
In line with the integration, USDe will be paired against Tether’s USDT on Binance and will also be integrated into Binance Earn, allowing users to earn weekly dollar-denominated rewards by holding USDe on the exchange. Moreover, the stablecoin will soon be accepted as collateral across Binance’s futures and perpetual markets.
Overall, the listing of USDe on Binance marks a significant milestone for Ethena’s stablecoin, paving the way for further growth and adoption within the cryptocurrency ecosystem.