Ethena Sees $1B Inflows as Crypto Rally Brings Back Double-Digit Yields
Ethena's USDe token has gained popularity, attracting approximately $1 billion in new capital over the past month, reaching a market capitalization of $3.44 billion. USDe, a "synthetic dollar," is backed by bitcoin and ether, utilizing short perpetual futures to generate revenue. Following negative perpetual funding rates in August and September, investors withdrew $1.2 billion from the protocol. However, with the recent surge in crypto markets and BTC hitting record highs, Ethena now offers a 29% annualized yield for staked tokens. Aave has integrated staked USDe as collateral, potentially increasing demand significantly. Ethena plans to share protocol revenues with governance token holders after a recent governance initiative approval, amid expectations of favorable regulations for DeFi under the incoming Trump administration.
