USDe Stablecoin Enters New Expansion Cycle with $547M Net Growth in May

Ethena’s USDe stablecoin has entered its fifth market expansion phase, registering $547 million in net creation during May 2025. The current total supply stands at $4.6 billion, with projections suggesting a potential surge to $14 billion market capitalization by August 2025 if historical growth patterns persist.

Supply dynamics remain closely tied to APY fluctuations, though the relationship isn’t linear—45% yields haven’t consistently driven adoption. Three distinct growth cycles have characterized USDe’s trajectory, each marked by issuance surges followed by redemption periods.

The stablecoin’s Phase 5 expansion follows documented patterns analyzed by Entropy Advisors, with the third growth cycle’s metrics suggesting possible supply growth to $11.6 billion in coming months. Market participants are watching whether this cycle will break established patterns or follow historical precedents.