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Ethena USDE Soars: Investors Search for Yields and Market Cap Soars. Indeed, the market for yield-generating Stablecoins has experienced notable growth, with Ethena’s USDE consolidating itself as the fourth largest Stablecoin globally, behind Sky’s DAI, Circle’s USDC and Tether’s USDT.
In fact, this achievement is due to its innovative mechanism that combines spot Cryptocurrency holdings and short positions in margined perpetual contracts. Allowing users to earn returns while maintaining the stability of their investment
Yield Chasers Fever Drives Ethena USDE to $4.12 Billion
This week, Ethena’s USDE has marked a milestone by surpassing $4.12 billion in market capitalization. Evidence of the growing interest of investors in this type of digital assets that offer stability and profitability.
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Specifically, as of November 28, 2024, the annual percentage yield (APY) stood at 29%, outperforming most competitors in the sector. Incidentally, this high APY has captivated a telling number of holders, driving the USDE supply to an ATH of $4.12 billion, distributed across 19,174 unique addresses.
Unrivaled performance rates
In comparison, competitors offer more modest rates:
- Circle’s USDC provides an APY of 4.7%, when stored in the Coinbase Wallet.
- Sky’s USDS offers an APY of 8.5%, which like Ethena’s rate can vary.
- Blast’s USDB is offering a 7.5% APY. However, USDE’s APY is much further ahead: about 6.17 times higher than USDC, 3.41 times higher than USDS, and 3.87 times higher than the current USDB rate.
Likewise, most of USDE is in the hands of a few. Of the almost 19,000 wallets that have USDE, only 100 control almost everything. This large amount of USDE does not move much, but rather remains still to earn rewards. This shows that people use USDE more to earn money than to spend. Since it was created, USDE has only had just over 600,000 transactions. However, USDC has a much broader scope and is actively used to pay for goods and services.
Circle’s USDC Consolidates Leadership with Overwhelming Lead
- Circle’s stablecoin has a market valuation of $36.13 billion.
- Sky’s USDS has a market capitalization of $895 million.
- USDB boasts a market capitalization of $150 million.
Finally, the growth of USDE can attract the attention of institutional investors seeking exposure to the crypto market in a more stable way.
I leave with this phrase from Ray Dalio: «Stablecoins are an interesting innovation. But its success will depend on regulatory clarity and the stability of the underlying assets.
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