March 27, 2024
Latest Cryptocurrency News

Ethena Emerges as Top-Earning DApp with $6.8 Million Daily Revenue

In a groundbreaking development for the decentralized application (DApp) space, Ethena has claimed the top spot as the highest-earning DApp, surpassing $6.8 million in daily cumulative revenue over the past week. The revelation comes from a post by Seraphim Czecker, Head of Growth at Ethena Labs, on March 8.

Ethena’s impressive performance places it just behind Tron, which raked in $38.6 million, and Ethereum, boasting a substantial $182.5 million in daily cumulative revenue over the last seven days.

Currently offering an enticing 67.2% yield on its USDe synthetic dollar to a user base exceeding 350,000, Ethena has become a force to be reckoned with in the decentralized finance (DeFi) sector. Notably, the market cap of Ethena’s USDe has experienced a meteoric rise of 43% in the past week and an astounding 409% in the past month, reaching an impressive $840 million, according to data from DefiLlama.

Ethena Labs introduced its USDe synthetic dollar to the public mainnet on February 19, causing a stir among investors. The synthetic dollar initially offered a remarkable 27.6% annual percentage yield (APY), drawing comparisons to the Anchor Protocol’s TerraUSD (UST) algorithmic stablecoin before its collapse in May 2022.

Founder of Ethena Labs, Guy Young, addressed concerns in an exclusive interview with Cointelegraph on February 22, stating, “The immediate reference to Terra Luna was just a knee-jerk reaction which people had to the yield itself.” Young emphasized the importance of a skeptical approach to new protocols, considering the industry’s maturation post the Terra ecosystem collapse.

Unlike the ill-fated Anchor Protocol, Ethena’s USDe yield is publicly verifiable. Young explained that the yield is generated through a combination of staking returns and shorting Ether perpetual future contracts.

Ethena Labs has made waves in the financial world, securing $14 million in funding for its synthetic dollar. The funding round, disclosed on February 16, was backed by venture capital firm Dragonfly. This follows a successful $6 million investment round in 2023, featuring prominent names such as Binance Labs, Gemini, Bybit, Mirana Ventures, OKX Ventures, and Deribit.

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