Ethena's USDe Overtakes DAI to Become the Third Largest Stablecoin

USDe, a stablecoin issued by decentralized finance (DeFi) platform Ethena, has surpassed Sky’s (formerly Maker’s) DAI to become the largest cryptocurrency by market capitalization.
On the 12th (local time), according to measurements by DefiLlama, the CeDeFi stablecoin "USDe" achieved double-digit staking revenue.
The report said that the rate of return has attracted billions of dollars in inflows. Meanwhile, the market capitalization of Sky’s flagship stablecoin, DAI, is expected to fall from $7 billion to $4.5 billion in 2022.
The total stablecoin market cap is just over $200 billion. Despite this achievement, USDe has a market cap of less than $6 billion.
That's far behind Tether (USDT) and USD Coin (USDC), which are at roughly $140 billion and $40 billion, respectively.
Since its launch in February 2024, USDe is expected to achieve double-digit annualized rate of return (APR) through Ascena's CdFi revenue strategy.
CdFi is a strategy that combines DeFi smart contracts with derivatives trading on centralized exchanges (CEXs).
Cryptocurrency research firm Messari said in a December 12 report that "starting in February 2024, USDe (sUSDe) holders will earn an average APY of 17.5%.
"The 2024/2025 tax rate was 55.9% (March 7, 2024) and 4.3% (August 8, 2024)," he said.