Ethena Labs USDe stablecoin has set a record by becoming the first synthetic stablecoin to reach a supply of $3 billion tokens within just four months of its launch. Since its public launch in February, USDe which maintains its peg to the dollar by offering yield earnings on holdings, has become the fourth largest stablecoin in supply.

The stablecoin's supply has increased by $1 billion since April 5, when it last reached $2 billion. According to The Block, another $2 billion in supply is needed for it to surpass DAI and become the largest algorithmic or decentralized stablecoin.

Algorithmic stablecoins are digital currencies that use computer algorithms and smart contracts to maintain a stable value by pegging it to another asset, such as the U.S. dollar.

With it recent rise, USDe hold a 3.3% market share in the stablecoins indusry, trailing far behind Tether which holds a dominant 57% share.

Although, USDe has similarities to Terraform Labs's UST stablecoin, but their mechanics vary. USDe generates yield through cash-and-carry trades and staking revenue, which is then distributed to holders. Recently, USDe was integrated with Bybit, offering spot trading pairs with Ethereum and Bitcoin.

USDe started distributing its governance token, ENA, via airdrops in April. The token's market capitalization reached $1.9 billion, according to CoinmarketCap's data. ENA's price has dropped from its peak of $1.52 to around $0.994 at the end of Saturday.