Ethena Token Jumps 14% as USDe Becomes Third-Largest Stablecoin

ENA kicked off the week with impressive momentum that has captured the attention of the cryptocurrency community. The digital asset has posted gains exceeding 14% in the past 24 hours, pushing its market capitalization to approximately $3.95 billion at current levels.

Ethena Gains Traction as USDe Climbs Rankings

ENA, which serves as the native token for the Ethereum-based synthetic dollar protocol Ethena, has entered what appears to be a significant bullish phase. Data from CoinMarketCap shows the token has jumped 14.84% over the last day, reaching $0.6230 and marking a notable recovery from its performance just one week prior.

USDe is now the fastest USD asset to reach $3b in crypto history pic.twitter.com/8lIREyD3i1

— G | Ethena (@gdog97_) June 1, 2024

Beyond the price appreciation and market cap expansion, ENA’s 24-hour trading volume has climbed by 33.59%. These improvements across key metrics have helped propel Ethena’s USDe stablecoin into the third-largest position in its category, trailing only Tether’s USDT and Circle’s USDC. This achievement means USDe has now surpassed Sky Dollar (USDS) in the rankings.

The advancement reflects increasing appetite for USDe within the Decentralized Finance ecosystem. On-chain data supports this trend, showing the Ethereum network experienced a substantial 75% increase in the stablecoin’s supply during the past month. Information from DeFiLlama indicates USDe supply has reached $9.3 billion.

Protocol Reaches New Milestone in Total Value Locked

The Ethena DeFi protocol has also achieved the sixth position for Total Value Locked, with this important metric climbing above $9.47 billion. This surge appears to stem from attractive yields and recent platform integrations, drawing both yield-focused DeFi participants and traditional stakers to the ecosystem.

In addition to the positive price action and growing interest in USDe, Ethena is developing plans for a USD-compliant stablecoin following the recent passage of the GENIUS Act. The project intends to pursue this initiative through a partnership with Anchorage Digital, which holds the distinction of being the first federally chartered cryptocurrency bank in the United States.

Market Implications

The strong performance of ENA alongside USDe’s climb to third-largest stablecoin status demonstrates growing institutional and retail confidence in alternative synthetic dollar solutions. This momentum could signal broader acceptance of innovative stablecoin mechanisms within the DeFi ecosystem.