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Stablecoins continue to evolve, and one name is rising quickly, USDe. Created by Ethena Labs, USDe has become one of the fastest-growing stablecoins in the world. Its supply has already reached $12.4 billion, up 42 percent in recent months, placing it behind only USDT and USDC.
What makes USDe stand out is how it is built. Unlike traditional stablecoins that hold reserves in banks, USDe follows a different path. It is described as a “synthetic dollar,” using a mix of crypto assets and futures contracts to keep its value close to $1. This structure allows it to stay stable while also creating opportunities for yield.
That combination has caught attention. In just 500 days, USDe reached $10 billion in total value locked, making it the fastest stablecoin to grow to that level. Investors have been drawn not only to its scale but also to its ability to generate returns in a way that others cannot. This has become even more relevant after the passage of the GENIUS Act in the United States, which prevents regulated stablecoin issuers from offering yields. For many users, USDe fills that gap.
Ethena Labs is preparing to add another layer to this story. A new fee switch will allow ENA token holders to share in protocol revenues. This could strengthen the ecosystem around USDe and encourage long-term support from its community.
There are risks that should not be ignored. USDe relies heavily on derivatives and centralized exchanges, which makes it vulnerable to funding shifts and liquidity pressure. Its once sky-high yields have already begun to fall as markets adjust. These concerns highlight the need for caution, even as growth continues.
Even with these challenges, USDe has combined rapid expansion, innovation, and strong community interest in a way that few stablecoins have managed. Its adoption and upcoming upgrades suggest it could play a major role in the next chapter of digital money. For now, it is not only gaining attention, it is positioning itself as a contender to shape the future of stablecoins.
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