USDT’s Growing Competition: Ethena’s Synthetic Dollar USDe Gains Major Backing as Market Cap Triples

In a significant development for the stablecoin ecosystem, MEXC Ventures has dramatically increased its investment in the Ethena protocol to $66 million total, demonstrating strong institutional confidence in synthetic dollar technology. The venture capital firm's latest $14 million allocation to ENA governance tokens follows previous investments of $16 million in ENA and $20 million in USDe, Ethena's synthetic dollar stablecoin. This substantial capital infusion comes as USDe experiences explosive growth, with its market capitalization nearly tripling since July 2024. The rapid expansion of synthetic stablecoins like USDe presents both competition and innovation opportunities for established stablecoins including USDT, potentially reshaping the digital asset landscape. As decentralized finance continues evolving, such significant institutional backing signals growing mainstream acceptance of algorithmic and synthetic stablecoin models that could challenge traditional fiat-backed stablecoins in the coming years. The timing of this investment surge coincides with increased regulatory scrutiny of traditional stablecoins, potentially positioning synthetic alternatives as attractive options for investors seeking decentralized exposure to dollar-pegged assets without centralized custody risks.

MEXC Ventures Boosts Ethena Investment to $66 Million, Signaling Strong Confidence in Synthetic Stablecoin Growth

MEXC Ventures has amplified its commitment to the Ethena ecosystem, raising its total investment to $66 million. The latest $14 million infusion into ENA—the protocol's governance token—follows earlier acquisitions of $16 million in ENA and $20 million in USDe, a synthetic dollar-pegged stablecoin.

USDe's market capitalization has surged nearly threefold since July, now standing at $14.65 billion. While still dwarfed by traditional reserve-backed stablecoins like Tether's $174.7 billion USDT, USDe's collateralized stablecoin and futures contract model demonstrates growing institutional interest in alternative stablecoin architectures.

"We view our role as ecosystem builders rather than passive investors," said LEO Zhao, Investment Director of MEXC Ventures. The firm has now deployed over $100 million across 40 projects, with targeted support for seven portfolio companies.

Tether Launches US-Focused Stablecoin USAT via Rumble Partnership

Tether CEO Paolo Ardoino unveiled the USAT stablecoin at Token2049 Singapore, targeting mainstream adoption through a strategic alliance with video platform Rumble. The dollar-pegged asset leverages Rumble's planned crypto wallet integration and 51 million-strong US user base to drive regulated stablecoin usage.

The initiative builds on Tether's $775 million investment in Rumble last year, which secured a 48% stake. USAT follows USDT's $174.6 billion market dominance, offering a compliance-focused alternative for American users. Ardoino emphasized Rumble's crypto infrastructure shift as key to simplifying digital dollar access.

Trump-Backed WLFI Partners with Aptos to Launch USD1 Stablecoin, Challenging Tron and Ethereum

Aptos has joined forces with World Liberty Financial (WLFI), backed by the Trump family, to introduce the USD1 stablecoin on its blockchain network. The collaboration, finalized after months of preparation, positions Aptos as a direct competitor to Tron and ethereum in the rapidly expanding stablecoin market.

USD1 is slated for launch on October 6, with immediate support from major Aptos DeFi protocols including Echelon, Hyperion, Thala, and Tapp. Leading wallets and exchanges such as OKX, Petra, Backpack, and Gate Wallet will facilitate its rollout.

Aptos CEO Avery Ching emphasized the network's technological advantages, citing speed and low transaction costs as key factors in WLFI's decision. "They view us as some of the best tech partners they could work with," Ching stated during the TOKEN2049 conference in Singapore.

The move directly challenges Tron's dominance in the stablecoin sector, where it currently hosts $78.6 billion in Tether (USDT). Ethereum remains the market leader with nearly $95 billion in stablecoin value, while Aptos trails with just $1.3 billion in USDT. Aptos aims to leverage its performance advantages to capture significant market share.