Ethena's USDe Surges to $6B, Bitcoin's Institutional Interest Booms
Ethena's USDe stablecoin has witnessed remarkable growth since its launch in February 2024. With a total circulating supply now exceeding $6 billion, it has secured the third-largest stablecoin market capitalization. Meanwhile, Bitcoin has seen increased institutional interest, with companies like MicroStrategy boosting their bitcoin holdings and more businesses adding it to their balance sheets.
Ethena expanded its stablecoin offerings in late 2024 with the launch of USDtb, backed by US government bonds and a small stablecoin reserve for swift redemptions. The introduction of staked USDe (sUSDe) on Aave in the same quarter attracted over $1 billion in inflows within weeks, primarily from a few large users.
Bitcoin's market depth surged by over 85% in 2024, reaching approximately $370 million and matching pre-FTX levels. This growth was fueled by increased institutional investment, with MicroStrategy's bitcoin holdings more than doubling from 252,220 BTC in September to 446,400 BTC by December. Companies such as KULR Technology, Rumble, and Genius Group also began allocating a portion of their balance sheets to bitcoin, driving its recent rally.
The growth of Ethena's USDe stablecoin and the increased institutional interest in bitcoin have contributed to a resurgence in crypto trading activity. Aggregate trading volumes across major exchanges have reached levels not seen since 2021, signaling strong growth in the market. Despite the success of USDe, not all airdropped tokens have maintained their value post-launch, with some like EIGEN and SEAM experiencing significant declines.
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