On Thursday, Ethena Labs announced that its Ethena protocol has achieved over $500 million in cumulative revenue. Since July, both revenue growth and the circulating supply of its synthetic stablecoin, Ethena USDe (USDe), have accelerated as synthetic stablecoins capture more market share.
The update was shared by Ethena Labs through a post on X, highlighting that protocol revenue reached $13.4 million in the past week and USDe supply reached a record high of $11.7 billion.
An Ethena Labs spokesperson informed Cointelegraph, “Ethena’s revenue has seen strong inflows into USDe, paired with favorable market conditions that have boosted returns from its delta-neutral hedging reserve model. The protocol’s momentum mirrors the increasing demand for and confidence in USDe as a reliable store of value.”
According to the decentralized finance analytics platform DefiLlama, Ethena USDe currently boasts the third-largest market capitalization among stablecoins, and the top market capitalization among synthetic stablecoins. Over the last month, the market cap of Ethena USDe has surged by 86.6%.
Other synthetic stablecoins are also gaining traction and market share. Sky Dollar (USDS), which supports the Sky ecosystem and is an upgraded version of DAI (DAI), has increased its market cap by 14%. Similarly, Falcon USD (USDf), a synthetic dollar from Falcon Finance, has experienced a market cap jump of 89.4%.
Synthetic stablecoins come with both advantages and risks. While their lack of collateralization by physical assets may result in lower transaction costs, there is also the potential for instability and depegging, leading to significant losses for investors.
Related: Ethena Labs exits German market following agreement with BaFin
Stablecoin market surges 4% in August 2025
According to DefiLlama, the stablecoin market cap has risen by 4% in August, climbing from $266.6 billion on July 31 to $277.8 billion on Thursday. This increase follows a period of increasing regulatory clarity in the United States, highlighted by President Donald Trump signing the GENIUS Act into law on July 18.
Speaking at the Wyoming Blockchain Symposium 2025, US Federal Reserve Governor Christopher Waller remarked that the GENIUS Act might enable stablecoins to reach their full potential and enhance the dollar’s global presence.
China may respond with its own developments in stablecoins, reportedly considering a policy shift to allow Chinese yuan-backed stablecoins.
Magazine: Legal Panel: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
