U.S. market capitalization of Ethena surges by 75% within a month due to the Treasury's launch announcement
In a remarkable turn of events, Ethena's synthetic dollar stablecoin, USDe, has experienced a surge in supply that outpaces the growth seen across major Bitcoin ETFs and BlackRock's ETHA ETF over the past 20 days. This rapid growth has not only propelled USDe to become the third-largest stablecoin by market cap but also positively impacted the performance of its native token, ENA.
USDe's Explosive Growth
The market capitalization of USDe surged from approximately $5.3 billion in mid-July 2025 to over $9.3 billion by early August 2025, representing a roughly 75% increase in supply within a single month. This growth also propelled USDe to third place in the stablecoin rankings, following USDT and USDC.
Cross-Chain Adoption
The success of USDe can be attributed to its wide-ranging adoption. USDe is now available on 23 different blockchains via LayerZero, enabling decentralized cross-chain transfers and broadening its use cases.
Integration and Accessibility
The integration with fiat on-ramp provider Transak allows users worldwide to purchase USDe with local payment methods such as bank transfers, Apple Pay, Google Pay, and cards. This increased accessibility, especially in emerging markets with limited dollar access, has further fueled USDe's growth.
Impact on ENA Token
As USDe adoption surged, ENA's price rallied strongly, gaining over 15% in a single day and trading near $0.63 to $0.62. Bullish technical indicators suggest potential upside toward $0.79 or even $1 if momentum sustains. Whale accumulation and investor interest have supported ENA’s recovery in Q3 2025.
Staking and Yield
USDe offers yield-generating staking options (sUSDe) with approximately 10% APY, funded by ETH staking returns and derivatives strategies. This added incentive for holding the token strengthens the ecosystem.
Renewed Market Interest and Momentum
The rise in USDe's supply aligns with renewed attention on Ethena following the July 21 launch of Stablecoin X, a long-term treasury arm. Stablecoin X pledged to purchase $260 million worth of ENA, which is approximately 8% of the supply. Other stablecoins like USD Falcon and PayPal's PYUSD also saw moderate gains, but they failed to match the growth seen by USDe.
Interestingly, Tether (USDT) saw a $2.47 billion rise, and First Digital's USDS increased by around $1 billion. However, USDC recorded the largest decline in supply, dropping by nearly $800 million.
In conclusion, the success and expanding use of USDe have bolstered confidence in Ethena’s ecosystem, with the native ENA token benefiting from heightened investor demand and technical momentum reflecting the stablecoin’s rising prominence in DeFi. ENA's market cap hit $9.4 billion by August 4, reaching a new all-time high, and ENA is starting to show signs of a recovery, hinting at renewed market interest and momentum.
Crypto investors have taken notice of USDe's astonishing growth, as the surge in its supply outpaces that of major Bitcoin ETFs and Defi-related projects like BlackRock's ETHA ETF. This remarkable development has further boosted the value of Ethena's native token, ENA, as investing in the burgeoning technology sector continues to attract significant attention and interest.
Moreover, USDe's widespread adoption across various blockchains, enhanced accessibility through fiat on-ramp providers, and the addition of yield-generating staking options have all contributed to its explosive growth in the cryptocurrency and Defi finance landscape.
