cointelegraph.com
Ethena Labs on Thursday said its Ethena protocol has generated more than $500 million in cumulative revenue. Growth in both revenue and the circulating supply of its synthetic stablecoin, Ethena $USDe ($USDe), has accelerated since July as synthetic stablecoins gain market share.
Ethena Labs shared the news via a post on X, saying that in the past week, protocol revenue hit $13.4 million and $USDe supply hit an all-time high of $11.7 billion.
“Ethena’s revenue has been driven by strong inflows into $USDe and favorable market conditions that have amplified returns from its delta-neutral hedging reserve model,” an Ethena Labs spokesperson told Cointelegraph. “The protocol’s momentum reflects growing demand for and confidence in $USDe as a store of value.”
According to decentralized finance analytics platform DefiLlama, Ethena $USDe has the third-largest market capitalization of all stablecoins at this time of writing. It also has the top market capitalization among synthetic stablecoins. In the past month, the market cap of Ethena $USDe has risen 86.6%.
Along with Ethena $USDe, other synthetic stablecoins are gaining momentum and market share. Sky Dollar (USDS), which powers the Sky ecosystem and is an upgraded version of $DAI ($DAI), has seen a 14% increase in market cap. Falcon USD (USDf), a synthetic dollar created by Falcon Finance, has seen its market cap jump 89.4%.
Synthetic stablecoins have benefits as well as risks. Because they are not collateralized by physical assets, they may have lower transaction costs. But there’s a risk of instability and depegging, which can result in significant investor losses.
Related: Ethena Labs exits German market following agreement with BaFin
Stablecoin market jumps 4% in August 2025
According to DefiLlama, the stablecoin market cap has jumped 4% in August, rising to $277.8 billion on Thursday from $266.6 billion on July 31. The uptick comes amid growing regulatory clarity in the United States, with President Donald Trump signing the $GENIUS Act into law on July 18.
At the Wyoming Blockchain Symposium 2025, US Federal Reserve Governor Christopher Waller stated that the $GENIUS Act could help stablecoins reach their full potential and expand the dollar’s role worldwide.
China may counter with its own stablecoin move. In what would be a significant policy shift, it is reportedly considering allowing Chinese yuan-backed stablecoins.
Magazine: Legal Panel: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight