Ethena, the brainchild of Ethena Labs, has witnessed exponential growth, recently crossing $6.8 million in daily cumulative revenue. Seraphim Czecker, the head of growth at Ethena Labs, disclosed this milestone in a recent post.
The surge in revenue propelled Ethena to the top tier of decentralized applications (DApps), trailing only behind Tron and Ethereum in daily cumulative revenue over the past week.
Unprecedented yield offerings
Ethena’s USDe yield has garnered significant attention, offering a staggering 67.2% APY to its vast user base, which now exceeds 350,000 individuals. This substantial yield has solidified Ethena’s position as a dominant force in the DeFi space, attracting investors seeking lucrative opportunities.
In tandem with its impressive yield, the market capitalization of Ethena’s USD has witnessed a meteoric rise, surging by 43% in the past week and an astonishing 409% over the last month. According to data from DefiLlama, the market cap now stands at an impressive $840 million, underscoring the growing prominence of Ethena’s USDe in the decentralized finance ecosystem.
Maturing industry dynamics
The launch of USDe on the public mainnet on Feb. 19 initially sparked concerns among investors due to its high APY, reminiscent of the Anchor Protocol on Terra’s UST before the collapse of the Terra Luna ecosystem in May 2022.
However, Guy Young, the founder of Ethena Labs, emphasized that such apprehensions reflect the industry’s maturation, with investors rightly exercising skepticism and scrutiny.
Unlike the failed Anchor protocol, Ethena’s USDe yield is underpinned by publicly verifiable mechanisms generated through staking returns and shorting Ether’s perpetual future contracts. This transparency and security have instilled confidence among investors and underscored Ethena’s commitment to establishing a robust and sustainable DeFi ecosystem.
Strong backing and investment
Ethena Labs has secured substantial funding, indicating investor confidence in its vision and products. A recent funding round of $14 million, backed by venture capital firm Dragonfly, underscores the industry’s recognition of Ethena’s potential.
Prior investments totaling $6 million from prominent players like Binance Labs, Gemini, and others further validate Ethena’s trajectory and potential for growth.
