Ethena, the protocol powering the USDe synthetic dollar, raked in $6.53 million in fees over the last 24 hours, cementing its position as the top fee-generating decentralized application (dApp) in the crypto space, according to data from DeFillama.

Seraphim Czecker, Ethena Labs’ Head of Growth, shared insights from Token Terminal, affirming the project’s remarkable milestone. Czecker’s data indicates that Ethena amassed approximately $6.8 million in fees over the past week, outpacing competitors like MakerDAO and Arbitrum.

Yet, compared to leading blockchain networks, its revenue pales in comparison. Tron and Ethereum, for instance, boasted revenues of $38.6 million and $182.5 million, respectively.

What exactly is USDe?

USDe is a token pegged to the dollar’s value, offering lucrative yields. Though often labeled as a stablecoin, the team eschews this term, instead favoring “synthetic dollar.”

Ethena Labs launched the synthetic dollar on the public mainnet on Feb. 19 to widespread investor interest. At the time, the project debuted with a staggering 27.6% annual percentage yield (APY), surpassing the 20% yield offered by Anchor Protocol on the TerraUSD (UST) algorithmic stablecoin before its collapse in May 2022.

USDe’s unique model attracted $14 million in investments from prominent players such as Arthur Hayes, Brevan Howard, Franklin Templeton, Galaxy Digital, and Binance Labs.

In a recent update, Hayes, the co-founder of the BitMEX exchange, predicted that the project could flip Tether’s USDT dominance in the industry.

Hayes said:

“I believe that Ethena can eclipse Tether as the largest stablecoin. [However,] it will take many years for this prophecy to manifest itself.”

Rapid growth

Since its mainnet launch, USDe has experienced exponential growth, witnessing a staggering 44% surge in total value locked over the past week and an impressive 409% surge over the last month, reaching $838 million, according to DeFillama data.

This rapid growth has contributed to USDe’s development into one of the top 10 stablecoins by market capitalization, achieving this milestone in less than three weeks.

Market analysts have attributed this remarkable growth to the project’s enticing staking yield. Ethena, as stated on its website, offers a substantial 67.2% yield on its USDe synthetic dollar.

Furthermore, USDe now commands a significant portion of the global ether perpetual futures open interest, comprising nearly 8.69%. Notably, its average funding rate stands at an impressive 58.35%, as per data available on its website.