According to a statement shared on X by Ethena Labs on Thursday, weekly protocol revenue reached $13.4 million, while the circulating supply of Ethena USDe (USDe) hit an all-time high of $11.7 billion. This growth highlights increasing demand for synthetic stablecoins, which are emerging as a competitive alternative to traditional asset-backed options.
A spokesperson for Ethena Labs told Cointelegraph that inflows into USDe and favorable market conditions have amplified returns from its delta-neutral hedging reserve model, helping fuel momentum. The representative noted that the growth reflects rising confidence in USDe as a store of value within the crypto ecosystem.
DefiLlama data shows that USDe is now the third-largest stablecoin by market capitalization overall and the largest synthetic stablecoin, with a monthly market cap increase of 86.6%.
Other synthetic stablecoins gain momentum
- Sky Dollar (USDS) — an upgraded version of DAI powering the Sky ecosystem — recorded a 14% market cap rise.
- Falcon USD (USDf), created by Falcon Finance, surged 89.4% in market cap over the same period.
While synthetic stablecoins can offer advantages such as potentially lower transaction costs, they also carry risks, including potential instability and depegging, which can lead to significant investor losses.
Stablecoin market jumps 4% in August
The broader stablecoin sector has also expanded. According to DefiLlama, the global stablecoin market cap increased 4% in August, rising from $266.6 billion on July 31 to $277.8 billion as of Thursday.
This growth comes amid increasing regulatory clarity in the United States. On July 18, President Donald Trump signed the GENIUS Act into law, a move expected to strengthen legal frameworks for stablecoin issuance and usage.
At the Wyoming Blockchain Symposium 2025, US Federal Reserve Governor Christopher Waller said the GENIUS Act could help stablecoins reach their full potential and reinforce the dollar’s global role.
Meanwhile, reports from Beijing suggest China is considering launching yuan-backed stablecoins, signaling a possible policy shift with meaningful implications for global digital finance.
