Ethena’s synthetic dollar stablecoin, USDe, has seen impressive market growth in recent weeks. Its market cap now stands at $9.3 billion.

Over the past month alone, it increased by 75%, with a weekly jump of 24%.

USDe Growth Signals Strong Investor Appetite

Since July 18, yield-bearing stablecoin USDe has recorded the largest rise in supply among all major competitors, adding approximately $2.73 billion, according to data from Artemis.

This growth surpasses even Tether (USDT), which saw a $2.47 billion rise, and First Digital’s USDS, which increased by around $1 billion. Other stablecoins like USD Falcon and PayPal’s PYUSD also saw moderate gains, while USDC recorded the largest decline in supply, dropping by nearly $800 million.

This rise aligns with renewed attention on Ethena following the July 21 launch of Stablecoin X, a long-term treasury arm designed to allocate capital across the ecosystem. When the move was announced, Stablecoin X pledged to purchase $260 million worth of ENA, which is approximately 8% of the supply.

Alongside this strategic development, the high annualized yield of 11% offered by staked USDe (sUSDe) has significantly increased minting activity. Importantly, Ethena Foundation holds the authority to block any ENA sales made by Stablecoin X, compelling the entity to channel the purchased tokens into reinvestments or infrastructure upgrades.

According to Ethena founder Guy Young’s latest tweet, USDe supply over the past 20 days has outpaced those seen across all BTC ETFs and BlackRock’s ETHA ETF.

Impact on ENA

This surge in stablecoin demand appears to have positively influenced the performance of ENA, Ethena’s native token.

After briefly dipping to $0.51 over the weekend, ENA climbed back to around $0.62. The token has surged over 140% in the past month. Its market cap hit $8.4 billion at the end of July before reaching a new all-time high of over $9.4 billion by August 4. At the same time, ENA is starting to show signs of a recovery, hinting at renewed market interest and momentum.