Ethena’s progressive twin stablecoin technique is quickly gaining vital market share, sparking intrigue about its potential to problem Circle’s USD Coin (USDC) for supremacy. By providing each an artificial greenback (USDe) pegged by way of derivatives and a reserve-backed token (USDtb) backed by real-world belongings, Ethena appeals to a definite DeFi and institutional consumer base, driving spectacular progress but additionally revealing inherent dangers.
Ethena’s twin threats: How USDe and USDtb will enhance market share in opposition to USDC
Ethena’s distinctive strategy combines two completely different stablecoin fashions underneath one roof. USDe, the artificial greenback, goals to take care of its peg utilizing refined delta hedging methods, together with cryptocurrency derivatives. This mannequin permits income technology and attracts DeFi customers. Conversely, USDtb features like a standard stablecoin, backed by tangible RWA held by a regulated custodian, concentrating on customers who prioritize stability and compliance.
Associated: Arthur Hayes is bullish on Athena’s USDE with $360 million capital enhance aiming for NASDAQ itemizing
This mix has confirmed to be highly effective. In July 2025, USDe overtook MakerDAO’s Dai (DAI) to change into the third-largest stablecoin by market capitalization, behind trade giants Tether (USDT) and USDC.
In response to Santiment knowledge, USDe’s market capitalization exceeded $12.26 billion, the holder progress fee surged 72% in six months, and the variety of non-empty wallets reached greater than 32,500. USDtb added an extra $1.8 billion to the Ethena ecosystem, demonstrating demand for each fashions.
Strategic partnership: Binance, Anchorage and Jupiter develop Ethena’s attain
Ethena’s enlargement depends closely on strategic partnerships that embed tokens throughout main platforms.
- Binance: The world’s largest trade integrates USDe buying and selling pairs, permits their use as futures collateral, and immediately exposes them to tens of millions of merchants.
- Anchorage Digital: By partnering with this US-regulated custodian to situation USDtb (ranging from October 2025), USDtb’s compliance stance can be considerably strengthened and its attraction to establishments can be strengthened.
- Jupiter (Solana): The partnership goals to introduce JupUSD, probably changing a whole bunch of tens of millions of {dollars} (quoted at $750 million) price of USDC liquidity throughout the common Solana DEX aggregator’s ecosystem with an Ethena-powered various.
These transactions display Ethena’s aggressive push to change into a foundational stablecoin supplier throughout each centralized and decentralized platforms.
USDe Depeg explains: October crash reveals dangers of artificial fashions
Regardless of its progress, Ethena’s dependence on derivatives markets poses main stability challenges. On October 10, 2025, in the course of the world decline because of US commerce tensions, the value of USDe fell to $0.65 after which recovered.
The Depeg occasion highlighted the mannequin’s sensitivity to excessive market volatility and lack of liquidity. Santiment knowledge confirmed that Ethena’s redemption system labored all through the occasion. Nonetheless, new issues have arisen concerning the systemic dangers of artificial stablecoins.
Regulatory clouds collect: Can Ethena survive EU strain and compete with USDC?
Along with stability issues, regulatory pressures are growing. Experiences recommend that European Union regulators have formally requested Eatena to change or droop sure operations, reflecting deep skepticism concerning the artificial greenback mechanism throughout the growing stablecoin framework (MiCA).
That is in sharp distinction to USDC, which advantages from Circle’s efforts to construct a powerful compliance construction and acquire regulatory approvals all over the world.
Associated: Ethena’s USDtb turns into first stablecoin with clear path to US compliance
Disclaimer: The knowledge contained on this article is for informational and academic functions solely. This text doesn’t represent monetary recommendation or recommendation of any type. Coin Version shouldn’t be accountable for any losses incurred on account of the usage of the content material, merchandise, or companies talked about. We encourage our readers to do their due diligence earlier than taking any motion associated to our firm.
