The supply of USDe stablecoins has surged. Why has the price of USDe issuer Ethena still plummeted?

According to BlockBeats, U.S. Treasury Secretary Yellen stated that the GENIUS Act is crucial for the United States' leadership in digital assets. Stablecoins will expand the global use of the dollar and increase demand for U.S. Treasury securities.

Since the passage of the GENIUS Act in July, the supply of yield-bearing stablecoins has surged. Ethena's USDe and Sky's USDS are the biggest beneficiaries, yielding returns when staked.

According to DefiLlama data, since July 18, the circulating supply of USDe has increased by 70%, surpassing $10 billion, ranking third in market capitalization. During the same period, the circulating supply of USDS rose by 23%, nearing $4.81 billion, ranking fourth in market capitalization.