Ethena Labs’ synthetic dollar USDe has climbed to about $9.3 billion in circulation, a 75 percent jump since mid-July that pushes it past First Digital USD to become the world’s third-largest stablecoin, behind Tether’s USDT and Circle’s USDC. The rapid ascent comes amid a broader revival in the sector, with roughly $59 billion added to stablecoin market value this year. USDT still commands about 61 percent of the segment, while Ethereum continues to host roughly half of all outstanding tokens. Lower-value retail flows remain concentrated on BNB Chain, which has waived transfer fees for several stablecoins. Unlike incumbents that hold Treasury bills and cash, USDe is fully on-chain and backed by delta-neutral positions that pair spot crypto holdings with offsetting perpetual futures shorts, funneling funding yields to depositors. Ethena’s founders say they aim to expand circulating supply to $30-50 billion before seeking heavier monetization. At its current growth rate, analysts estimate USDe could challenge USDC’s number-two slot by 2027, though shrinking funding spreads and possible regulatory pressure pose risks to that trajectory.