Ethena’s $7.3B move: Is USDe the next center of gravity in DeFi’s stablecoin wars?

Key Points

1. Ethena’s USDe stablecoin attracted $2B in inflows this month, reaching a $7.3B market cap, making it the third-largest stablecoin behind USDT and USDC.

2. USDe offers a 10% APY on sUSDe, driving demand not just for stability but for yield, with protocol revenue reaching $30.85M in the past 30 days.

3. Ethena converts USDe demand into ENA buybacks, with 83M ENA (1.3% of supply) purchased in late July as part of a $260M buyback initiative.

4. ENA’s price surged 130% in July, reflecting sustained demand rather than short-term speculation, with further growth potential.

5. Unlike USDT and USDC, which rely on Treasury yields, Ethena generates yield through on-chain revenue, creating a unique feedback loop for token demand.