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
