Ethena Labs' synthetic dollar stablecoin, USDe, has gained significant community adoption, making it the fourth-largest stablecoin by market capitalization.

This milestone comes as USDe surpassed the entire Solana blockchain in revenue generation last week.

USDe supply exceeds $3 billion

Data from CryptoSlate shows that the supply of USDe has surpassed $3 billion just four months after its public launch in February, making it the fastest-growing USD-pegged asset in crypto history. Its market cap now exceeds Binance's FDUSD stablecoin and is just behind MakerDAO’s DAI.

USDe’s market cap is now greater than the combined value of all stablecoins on the Solana blockchain. Data from DeFillama indicates that USDe currently accounts for about 2% of the overall stablecoin market share.

DeFi analyst Patrick Scott noted that the focus will be on whether USDe can sustain this growth, develop deep liquidity, and further integrate into the DeFi ecosystem.

USDe’s rapid growth is attributed to its high yield rate of over 30% and adoption by major crypto projects like MakerDAO and Bybit exchange. However, some market experts have criticized USDe’s use of Bitcoin as a backing asset, expressing concerns about potential contagion risk for the broader market.

Revenue generation

Last week, Ethena’s USDe emerged as the highest-earning decentralized application (DApp), generating $7 million in revenue, surpassing Solana’s $6.3 million revenue in the same period.

Token Terminal data, shared by Ethena founder Guy Young, showed that only Tron and Ethereum outperformed the DApp in revenue generation. This achievement supports Token Terminal's prediction that Ethena is on track to generate $222.5 million in revenue over the next 12 months.

José Maria Macedo, CEO of Delphi Labs, stated that Ethena Labs is set to become the highest revenue-generating crypto project. He said:

“USDe will become the largest stablecoin outside of USDC/USDT in 2024. Ethena will become the highest revenue-generating project in all of crypto.”