The post USDe Stablecoin Enters New Expansion Cycle With $547M Net Growth In May appeared on BitcoinEthereumNews.com.

USDe enters Phase 5 with $547M growth, aiming for $14B market cap by August 2025. Supply closely tied to APY shifts, with 45% yields not always driving adoption. Three clear USDe growth cycles marked by issuance surges and followed by redemptions. Ethena’s USDe stablecoin has entered its fifth market expansion phase, registering a net creation of $547 million in May 2025. The new cycle, known as Phase 5, follows a series of growth and contraction periods observed over the past year, as documented by Entropy Advisors. The current total supply of USDe stands at $4.6 billion. If the pattern of past expansions continues, particularly the third growth cycle, the stablecoin’s supply could reach $11.6 billion in the coming months and possibly climb to a $14 billion market capitalization by August 2025. Entropy Advisors’ data shows a year-long sequence of alternating creation and redemption activity. The first phase of growth occurred in May 2024, when USDe issuance rose to $3.6 billion over seven months. This was followed by a correction during Phase 2, where redemptions outpaced new issuance, bringing the market cap down to $2.4 billion as staking yields (sUSDe APY) dropped below 5%. In November 2024, Phase 3 began with USDe issuance exceeding $1 billion in a single month, marking the largest supply surge on record. By January 2025, the market cap had doubled from its prior low, reaching a peak of $6.1 billion. However, this rally was again followed by a decline in supply during Phase 4, falling to $4.6 billion by early May 2025. Yield Volatility Affects Stablecoin Supply Another chart by Entropy Advisors compares the average annual percentage yield (APY) of USDe staking products with the token’s market cap over time. The analysis shows a strong correlation between changes in APY and supply behavior. Between August and…

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Filed under: News - @ May 28, 2025 4:29 am