Ethena Labs’ USDe stablecoin achieved a historic milestone by surpassing $10 billion in total value locked (TVL) in only 500 days since its launch. This rapid growth outpaces every major stablecoin in history and underscores shifting capital flows driven by regulatory changes.
The acceleration coincides with the enactment of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act on July 18, 2025. The legislation prohibits federally supervised stablecoin issuers from paying interest to holders, prompting risk-averse capital to seek yield through decentralized finance vaults and automated market strategies.
OUT protocol data shows that USDe holders have increasingly deployed assets into yield-bearing DeFi instruments, taking advantage of innovative liquidity-mining programs and algorithmic interest frameworks. Governance token ENA also recorded a price appreciation exceeding 100 percent over the past month, reflecting heightened demand for protocol control.
Market participants attribute USDe’s growth to a combination of yield arbitrage, active community incentives and robust segment partnerships. Institutional accounts reportedly account for a growing share of TVL, as hedge funds and asset managers diversify stablecoin exposures in pursuit of optimized returns.
Despite headwinds such as regulatory uncertainty and smart contract audit risks, Ethena Labs has maintained security standards through regular third-party assessments and collaboration with leading audit firms. The protocol’s governance council plans to introduce cross-chain stablecoin integrations and enhanced collateral options to sustain momentum.
As USDe cements its position among top stablecoins, DeFi stakeholders anticipate whether competitor protocols can replicate its growth trajectory and what new regulatory adjustments may emerge in response to the sector’s rapid evolution.
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