Ethena, the fastest growing stablecoin

Today, let’s dive into Ethena and its synthetic dollar, the USDe. Unlike traditional stablecoins like USDT and USDC, which rely on dollars in a bank account, USDe is fully collateralized by crypto—specifically Ether.

This makes USDe completely independent of traditional financial systems. What truly sets it apart is how it generates yield: by combining staking rewards on Ether with returns from derivatives. The result? A stable dollar with a built-in high yield.

This innovative approach has made Ethena incredibly popular. In less than a year, USDe has reached a market capitalization of $6 billion, making it one of the fastest-growing protocols in crypto history.

But Ethena’s vision goes beyond just an appealing stablecoin. It aims to become the dominant form of “internet money.” What does that mean? Ethena connects three financial worlds: DeFi, centralized crypto platforms, and the traditional financial system.

By offering higher yields than what’s typically available in any of these sectors alone, USDe is attracting massive capital inflows. This is helping to blur the lines between crypto and traditional markets, encouraging their integration.

Ethena has the potential to become a unifying force, dissolving the boundaries between these worlds and transforming crypto into the go-to “internet money.”