July has been a month of speedy expansion on Ethena as USDe expanded its supply by 75 percent and reached an overall market cap of 9.69B.
This has pushed the stablecoin ahead of SkyProtocol USDS in the ranking of stablecoin use, with a supply of USDe the third-largest.
The supply of USDe increased to a new record as Ethena’s model is the strongest during ETH rallies. | Source: DeFi Llama
USDe Supply Grows as ETH Price Rallies
USDe strengthened in July due to a shortage in March and April this year. The rise in the ETH prices allowed the stablecoin to grow as the market surpassed 3,800 at the height of the prices. Such a favorable market environment allowed Ethena’s earning formula to sustain a higher output.
More than 4 billion new USDe tokens were minted as a reaction to purchasing market conditions. Ethena had earlier been a conservative seller in the first half of 2025, when its price was below 2000 dollars. The current growth can be compared to a similar one that was observed at the end of 2024, when the market reached its peak in December.
The growth in stablecoins was an overall trend last month. The total supply of prominent stablecoins increased by $1.96B during the last week. Nowadays, the previous dominant tokens, such as those by Binance and FDUSD, are ranked below the De solution.
USDe Sees Strong Trading and Ecosystem Integration
USDe has been listed on multiple trading pairs at Curve Finance, such as USDC, FraxUSD, and mkUSD. Its rise in usage in centralized and decentralized exchanges has promoted it.
USDe trading is done on Bybit, which makes up more than 30 percent of the activity, and 20 percent is conducted on Uniswap V3. The reputation of USDe has grown, and the entity has been accepted by many of the DeFi protocols. It has now become one of the limited synthetic stablecoins nearing a 10B supply.
One of the most fantastic attractions for users is the possibility to stake the token. The staked product, sUSDe, trades at a premium and has gained popularity. It has now exceeded 5.22B of supply, and so there are around 4B of the USDe to circulate.
ENA Token Nears Recent Highs as Market Confidence Rises
The native currency of Ethena, ENA, has traded at around 0.60 in recent days, near its three-month high of 0.68 at the end of July. The price growth can be seen as the increasing belief in DeFi and enthusiasm towards the current bull market of 2025.
Another feature that attracts investors is the average growth rate of 8.85%, as presented by USDe. Such a yield would only be possible in the present favorable ETH conditions. At the beginning of July, the APY was only 3.51. Market conditions sometimes change, and in that case, Ethena may be forced to adjust the USDe supply accordingly.
