I. Core Highlights

  • USDe's total locked value (TVL) reached an all-time high: On August 10, 2025, USDe set a new record of $10 billion in TVL, becoming one of the fastest-growing stablecoins, achieving this milestone in just about 500 days.

    This part benefits from the new US legislation, the Genius Act, which will take effect on July 18, 2025, prohibiting traditional stablecoins from paying interest to users, resulting in a large influx of funds seeking returns into USDe, which provides returns through DeFi.

II. ENA Token Performance is Impressive

  • Strong Price Increase: ENA has risen 150% in the past month, with a price of about $0.85.

    Market sentiment is positive, and technical support is strong.: Most signs in the market show that investors are bullish, with significant capital inflows.

    Even facing the impending unlock pressure of tokens (about 170 million ENA, worth about $103 million), ENA still shows strong resilience, with market capitalization reaching a new high of 5.6 billion.

III. USDe Mechanism and Its Advantages

  • Innovative Synthetic Stablecoin Structure: The foundation of USDe is a 'delta-neutral synthetic dollar', continuously generating returns through arbitrage mechanisms like going long on spot, shorting perpetual contracts, and collecting funding rates, issuing sUSDe as a reward vehicle for holders, according to the Financial Times.

    The Battle Between Traditional and DeFi Models: Compared to stablecoins that are regulated and reliant on government bonds and other assets, USDe is entirely based on DeFi, unrestrained by traditional financial regulations, thus possessing a clear competitive advantage under the new law.

    However, there are systemic and market risks: including the possibility of the funding rate reversing, leverage congestion compressing yields, returns dropping to very low levels, and potential risks associated with exposure to liquid staking tokens (such as stETH).

The Genius Act has changed the stablecoin ecosystem, and USDe is seizing opportunities by leveraging DeFi's flexibility. Capital preferences are shifting away from traditional stablecoins that offer no interest, with investors turning to USDe, which can provide returns; changes in TVL structure quickly reflect trends in capital migration. Ethena's ability to maintain peg and yields in a market headwind will be crucial for its survival. Future unlocking events, governance mechanisms (such as voting and protocol optimization), cross-chain expansion, and regulatory compliance will affect long-term attractiveness.

V. Conclusion and Strategy Recommendations

Ethena has taken the lead in a tightening regulatory environment through the innovative structure of USDe, with explosive growth in TVL and significant recovery in ENA reflecting market recognition of its model. However, this also comes with deep-seated market and systemic risks.

Strategy Recommendations:
In the short term, one can focus on USDe TVL, staking APY, and the technical trends of ENA, moderately participating in arbitrage to capture growth dividends.

In the medium to long term, attention should be paid to the sustainability of the funding rate, market reactions after unlocking, and the model's adaptability after further tightening of regulations.


Those with a lower risk appetite should exercise caution and wait, avoiding high leverage or excessive concentration of investments.