The market value of USDe has risen to 3.46 billion USD, with nearly 1 billion USD in funds flowing in over the past month

According to data from DefiLlama, the stablecoin USDe issued by Ethena Labs attracted approximately $1 billion in new funds over the past month, rebounding its market value to $34.6 billion, only 5% lower than the historical high of $36 billion set in July. The crypto market's perpetual contract funding rate turned negative in August and September, making Ethena's strategy unfavorable for investors as its yield was lower than the risk-free rate of return on dollars. Investors withdrew $1.2 billion from this protocol between July and October.

Analysts pointed out that the reason for the resurgence in USDe supply can be attributed to a recent surge in contract market funding rates. Data from Ethena's official website shows that sUSDe (pledged USDe) has an average APY that has risen to 29%. There are more catalysts expected to drive further growth in future. For example, decentralized lending protocol Aave added pledged USDe tokens into their available collateral assets allowing users to borrow against these tokens while earning returns.