USDe hits $3 billion in four months...surpassing FDUSD

Athens' digital stablecoin, USDe, quickly reached $3 billion just four months after its launch. This achievement highlights the growing demand and trust in stablecoins within the decentralized finance (DeFi) ecosystem.

Stablecoin Athena (USDe) crosses the $3 billion mark

USDe is a dollar-pegged stablecoin created by Ethena Labs. It generates returns by storing ETH and managing derivatives, and is built on the Ethereum blockchain. Additionally, USDE is fully supported on-chain and can integrate with other blockchain protocols.

As of June 2, USDe's market valuation was approximately $3.02 billion, surpassing First Digital's FDUSD with a bid of $2.9 billion. This achievement made USDE the fourth largest stablecoin. Athena founder Guy Young noted: has USDe became the fastest dollar-pegged asset in crypto history to reach this level.

According to EtherScanUSDe manages approximately 13,235 unique addresses. The Athena smart contract holds the largest share at $1.22 billion, or over 40% of the total supply, while the LP storage address holds $511.2 million, or 16.8%. Other significant holders include Pendle Finance, Morpho and Zircuit.

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However, there are concerns about Athens' rapid growth. DeFi expert Andre Cronje has warned that USDe could face a collapse similar to that of the Terra stablecoin (UST) due to its use of perpetual contracts and reliance on yield-based collateral. CryptoQuant founder Ki Young Ju also echoed this sentiment, questioning his ability to maintain a delta neutral strategy during bear markets.

Despite criticism, the project continues to gain traction. At the time of writing, Ethena offers an annual yield (APY) of 33.5% for its stablecoin, which attracts many DeFi enthusiasts. If 200,000 users have already joined the platform, new participants still need an invitation code.

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In conclusion, the rapid growth of USDe, reaching $3 billion in a short period, highlights the growing demand for innovative stablecoin solutions. Athena's success demonstrates the viability of synthetic stablecoins and sets a new standard in the DeFi space, signaling their future adoption.