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Ethena Labs' synthetic dollar stablecoin USDe emerged as a standout performer, surging 47.8% to $12.1 billion in market capitalization. The milestone makes USDe only the fifth stablecoin to cross the $10 billion threshold, achieving the feat in just 609 days since inception - the second-fastest on record after the now-defunct TerraClassic USD.

USDe's growth comes as the stablecoin offers an alternative to traditional yield-bearing products following the approval of the GENIUS Act in the United States, which prohibits stablecoin issuers from offering direct yield. Ethena's protocol generates yield internally through synthetic, basis-trade mechanics, currently offering 4.76% yield with its staked variant sUSDe providing 6.02%.

Tether's Grip Loosens

While USDT$1.0005 maintained its position as the dominant stablecoin with $167 billion in market cap - up 1.62% for the month - its market share declined to 60.2%, the lowest level since February 2023, with newer entrants like USDe and World Liberty Financial's USD1 capturing market share.

USDT remains firmly in control of trading activity, accounting for 80.3% of stablecoin trading volume on centralized exchanges - up from 70.8% in July and marking the first increase in three months.

New Players Rising

World Liberty Financial's USD1 reached a new all-time high of $2.43 billion in market cap, growing 11.6% in August. Trading activity around USD1 pairs surged to $1.71 billion, driven by increased exchange listings.

PayPal's PYUSD also showed strong momentum, rising 23.5% to $1.16 billion. The stablecoin recently expanded to Arbitrum and Stellar blockchain networks and was among the first stablecoins used in a U.S. public offering as part of a $1.15 billion settlement.