The market capitalization of Usde rose from around $ 5.33 billion on July 17 to more than $ 9.3 billion by 4 August, which marked an increase of almost 75% and it in the number three lock under all stablecoins, behind USDT and USDC only.
The sudden turnout has positioned the synthetic dollar of Ethena under the top staboins and at the same time raises questions about whether a Delta-Neutral, Crypto-Native Activa can retain such a momentum in a market that is historically dominated by Fiat-Stundied Coins.
The jump in market capitalization reflects more than just enthusiasm from investors. During the period of less than 30 days, more than $ 3.1 billion was beaten in new usde. This inflow correlates with positive financing percentages in the perpetual futures and a sharp increase in attention about Ethena’s anda Token Buyback program.
Fast climb of Usde
The speed of the growth of Usde stands out in the Stablecoin landscape and draws parallels with the climb of USDC, which crossed the $ 10 billion threshold in March 2021. At ~ $ 9.25 billion, Usde is now on the same scale as that Mijlpone.
In contrast to established operators USDT and USDC, which are supported by traditional bank instruments such as T-Bills, Usde works entirely on the chain through a synthetic structure. It is supported by a Delta-neutral strategy that combines long spot positions in digital assets such as BTC, ETH or Sol with compensating eternal short positions.
The resulting basic or financing revenue is passed on to strikers who convert the usde into Susde. Ethena has published this model as offering attractive returns and bypassing traditional financial intermediaries. As the founder of the project, Guy Young, has noticed, Usde wants to offer a risk profile that differs from stablecoins with Fiat-laid stable coins.
The basic trade mechanism that is authorized by the revenue of Usde has proved to be lucrative in bullish or volatile market conditions, where continuous financing is expanding in favor of short sellers. This dynamic was an important engine of the growth of Usde in July.
However, the sustainability of this yield is less clear. Financing rewards that were once higher than 60% annually fallen below 5%, because more capital has been helped in the market.
Ethena’s own documentation identifies “financing risk” as a primary care, where the strategy is very sensitive to shifts in the market structure, especially if the financing of negative or counterpartability on large exchanges is affected.
Usde -leaf -based stablecoins in the dust
Market data strengthens the scale of the recent climb of Usde. For each coinmarket cap and Defillama, Usde is now third under the stablecoins through market capitalization, with only USDTs ~ $ 164 billion and USDCs ~ $ 64 billion.
In particular, this growth has also led to the surpassing of Usde, so that the competitors such as USDS (formerly DAI) are surpassed, which illustrates the rearrangement within the decentralized Stablecoin rankings.
Although still $ 50 billion behind USDC, the current size of Usde is equal to half of USDC market capitalization during the DIP from November 2023 to $ 24 billion.
If used one 8.4% monthly growth percentageAssuming USDC will remain flat, it could be possible Exquence USDC within two years.
The reflexivity of the model has also drawn analytical importance. Young outlined how the growth of Usde unintentionally stimulates the question of USDT: “For every unit of shorts Ethena contributes to the market, a unit of Tether question is created … An increase of $ 1 in Usde leads to an increase in ~ $ 0.70.” This market classification suggests that the growth of the used indirectly can strengthen the established operators trying to disturb, which underlines the complexity of its systemic interactions.
The recent Usde process shows the potential for a non-fiat-supported Stablecoin to achieve a meaningful scale. The rapid climb emphasizes both the strength and the limitations of crypto—andnative yield structures.
Nevertheless, it also brings back memories of algorithmic stablecoin Luna Ust, which shot up to more than $ 60 billion in market capitalization before he lost his PEG and actually crashed at zero.
Although the short -term momentum has put it forward, whether it can now maintain the speed in the midst of compressed financing, exposure to the preserving risk and the investigation of the regulations remains uncertain.
For the time being, the synthetic dollar of Ethena is a competition among giants, the future is closely matching the volatile mechanics it uses.
