Ethena Labs’ dollar-pegged token USDe has vaulted to the number-three spot in the stablecoin rankings after its circulating supply swelled roughly 75% in the past three weeks to about $9.3 billion, according to market-data trackers on 4 August. The surge pushed USDe past First Digital USD (FDUSD) and put the synthetic-dollar product behind only Tether’s USDT and Circle’s USDC. Ethena’s total value locked has climbed to nearly $10 billion, helped by double-digit yields advertised on the platform. USDe’s rapid ascent comes against a backdrop of unprecedented activity in the broader stablecoin market. On-chain stablecoin transaction volume reached a record $1.5 trillion in July, while the aggregate supply of dollar-linked tokens on the Ethereum network rose to an all-time high of about $145.4 billion, according to analytics firm Token Terminal. Regulatory clarity from the federal GENIUS Act—signed on 19 July and barring stablecoin issuers from paying yield—has not damped competition for deposits. Crypto exchange Coinbase and payments giant PayPal, which are not the issuers of USDC and PYUSD respectively, continue to offer customers rewards of up to 4.1% on those tokens, arguing the programs fall outside the law’s restrictions. The incentives, alongside USDe’s advertised 10%–19% returns, are drawing fresh capital into the sector. The renewed demand for stablecoins is feeding through to the wider digital-asset market. Ether, the native currency of the Ethereum network, reclaimed the $3,700 level on 4 August as network activity rose to its highest since late 2021.