On Thursday, Ethena Labs announced that its Ethena protocol has exceeded $500 million in total revenue. The increase in both revenue and the circulating supply of its synthetic stablecoin, Ethena USDe (USDe), has accelerated since July as synthetic stablecoins capture more market share.
Ethena Labs revealed this information through a post on X, noting that in the past week, protocol revenue reached $13.4 million, while USDe supply hit an all-time high of $11.7 billion.
“Ethena’s revenue growth is fueled by strong inflows into USDe and favorable market dynamics that enhance returns from its delta-neutral hedging reserve model,” a spokesperson from Ethena Labs told Cointelegraph. “The protocol’s upward trajectory indicates increasing demand for and trust in USDe as a reliable store of value.”
According to the decentralized finance analytics platform DefiLlama, Ethena USDe currently holds the third-largest market capitalization among all stablecoins, and it has the largest market cap among synthetic stablecoins. Over the past month, Ethena USDe’s market cap has surged by 86.6%.
Other synthetic stablecoins are also making headway and increasing their market share. Sky Dollar (USDS), which underpins the Sky ecosystem and serves as an upgraded version of DAI (DAI), has experienced a 14% rise in market cap. Falcon USD (USDf), a synthetic dollar developed by Falcon Finance, has seen its market cap soar by 89.4%.
Synthetic stablecoins carry both benefits and risks. While they typically have lower transaction costs due to their lack of collateralization by physical assets, there are risks of instability and depegging, which could lead to significant losses for investors.
Related: Ethena Labs exits German market following agreement with BaFin
Stablecoin market jumps 4% in August 2025
Per DefiLlama, the stablecoin market cap has increased by 4% in August, rising to $277.8 billion on Thursday from $266.6 billion on July 31. This growth follows increasing regulatory clarity in the United States, marked by President Donald Trump signing the GENIUS Act into law on July 18.
During the Wyoming Blockchain Symposium 2025, US Federal Reserve Governor Christopher Waller remarked that the GENIUS Act could enable stablecoins to realize their full potential and extend the dollar’s influence globally.
In response, China may consider its own stablecoin initiatives. Reports suggest that it is potentially looking into allowing Chinese yuan-backed stablecoins, which would represent a notable shift in policy.
Magazine: Legal Panel: Crypto aimed to disrupt banks, but now it’s becoming them in the stablecoin debate
