On Thursday, Ethena Labs announced that its Ethena protocol has achieved over $500 million in total 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 announcement was made via a post on X, indicating that in the past week, protocol revenue reached $13.4 million and USDe supply peaked at an all-time high of $11.7 billion.
According to a spokesperson from Ethena Labs, “Ethena’s revenue has stemmed from robust inflows into USDe and favorable market conditions that have boosted returns from its delta-neutral hedging reserve model. The momentum of the protocol reflects increasing demand for and trust in USDe as a reliable store of value.”
As per data from decentralized finance analytics platform DefiLlama, Ethena USDe currently holds the third-largest market capitalization among all stablecoins. It also leads the market among synthetic stablecoins, with its market cap increasing by 86.6% over the past month.
Besides Ethena USDe, other synthetic stablecoins are also gaining traction. Sky Dollar (USDS), which supports 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 by Falcon Finance, has seen its market cap surge by 89.4%.
Synthetic stablecoins offer both advantages and drawbacks. While they can have lower transaction costs due to not being backed by physical assets, they also carry a risk of instability and depegging, which can lead to significant losses for investors.
Related: Ethena Labs exits German market following agreement with BaFin
Stablecoin market experiences 4% growth in August 2025
DefiLlama reports that the stablecoin market capitalization increased by 4% in August, climbing to $277.8 billion on Thursday from $266.6 billion on July 31. This rise coincides with increased regulatory clarity in the United States, following President Donald Trump signing the GENIUS Act into law on July 18.
During the Wyoming Blockchain Symposium 2025, US Federal Reserve Governor Christopher Waller mentioned that the GENIUS Act could facilitate stablecoins in realizing their full potential and broaden the dollar’s significance globally.
Meanwhile, China may respond with its own initiatives regarding stablecoins, as it is reportedly contemplating allowing stablecoins backed by the Chinese yuan.
Magazine: Legal Panel: Crypto aimed to disrupt banks, now it’s becoming them in stablecoin debate
