Stablecoin market reaches new record high – Ethena catches up

• Never before has such a high volume of capital been concentrated in stablecoins as it is now. The market capitalization reached over $280 billion in the last few hours, according to data from DeFiLlama.
• Week-on-week, the sector alone grew by over $6 billion. Month-on-month, the value increased by just over 6 percent, or $16 billion.
• Circle and Tether remain the dominant forces in the market. Together, these issuers account for almost 85 percent of the market capitalization.
• Tether remains the absolute leader in the industry. The stablecoin giant's USDT product holds a market share of over 59 percent, with a market capitalization of nearly $168 billion. However, the stablecoin's overall dominance fell by 4 percent.
• Circle maintains a market share of approximately 25 percent with a market capitalization of $71 billion.
• In contrast, Ethena's stablecoin was able to gain ground. USDe doubled its market share compared to February to over 4 percent, with a market capitalization of $12 billion. This secured Ethena's position as the third most valuable stablecoin.
• The project's success can be attributed in part to various DeFi integrations and on-chain yields. On the popular lending protocol Aave, users staking USDe currently receive returns of nearly 14 percent. By comparison, USDC and USDT yield just over 4 percent.
• The general increase in popularity of stablecoins can be attributed primarily to more favorable regulatory conditions in the US. Last month, the Genius Act was passed, the first law to establish a legal framework for stable-value cryptocurrencies. Read more about the laws here: GENIUS and CLARITY Act: These are the consequences for the crypto market.

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Sources

• Stablecoin metrics on DeFiLlama
• Stablecoin Yields on Aave