July 2025 was a breakthrough month for Ethena Labs. Out of the top three stablecoins—USDT, USDC, and USDe—**USDe captured 26% of all new issuance**, with supply soaring 55% to 8.5 billion. This rapid growth is reshaping the stablecoin landscape and putting Ethena firmly in the spotlight.
A major catalyst has been the launch of USDtb in the United States. Fully compliant under the GENIUS Act, USDtb is approved as collateral for USDe and was developed in collaboration with Anchorage, adding a layer of trust and security to Ethena’s ecosystem.
Ethena also introduced StablecoinX, designed to buy and hold $ENA tokens. The initiative raised \$360 million, with \$260 million allocated for ENA buybacks, representing roughly 6.7% of total supply as of July 31. Ethena has also announced plans to go public via the TLGY SPAC, trading under the ticker USDE, which could open the door to broader market exposure.
The ENA token itself has been gaining strong momentum. In July, its price climbed about 43%, supported by the buyback program and new exchange listings. ENA’s market cap now stands at around \$4.8–\$4.9 billion, with a trading price of \$0.74–\$0.75. Ethena’s protocol revenue has reached \$290 million, placing it 4th among the largest stablecoin projects.
Still, rapid growth comes with challenges. USDe, now the third-largest stablecoin with a market cap close to \$9.3 billion, has raised liquidity concerns on platforms like Aave. To address this, Chaos Labs is developing a *risk oracle* to strengthen risk management.
USDe’s yield mechanism is another key differentiator. Ethena uses a **delta-neutral basis trade**—taking long positions on stETH and short positions on ETH perpetuals—to generate returns without relying on traditional finance. While innovative, this strategy requires careful oversight, particularly during volatile market conditions.
In short, Ethena Labs is expanding quickly, with USDe and ENA making major strides. The combination of regulatory-friendly products, strategic buybacks, and innovative yield strategies positions them well for future growth—though navigating market risks will be essential.
Source : Messari
