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      ARK Invest Projects Significant Growth for USDe Supply

      Lorenzo Valente, the Director of Digital Asset Research at ARK Invest, has indicated that the supply of USDe, a synthetic dollar protocol, is poised for substantial growth. Following a recent recovery from a low of $3.8 billion, the supply has increased by approximately 30%, reaching nearly $5 billion. Valente attributes this growth to shifts in collateral towards off-chain yields, such as government bonds, due to inverted funding rates in the cryptocurrency market.

      Valente highlighted that basis trading has rebounded, now accounting for about 20% of the collateral, and is experiencing rapid growth. He noted that the U.S. stock market, valued at around $70 trillion, has shown an average annual growth rate of over 8%. This bullish demand is expected to sustain positive funding rates, which could lead to a significant expansion of USDe's supply, potentially exceeding $20 billion in the near term and reaching between $30 billion and $40 billion within the next 12 to 18 months.

      The infrastructure and operations of Ethena, the platform behind USDe, have been validated, and Valente anticipates that Ethena Pay will further enhance demand for USDe. He emphasized that the chains, protocols, and vaults supporting USDe's supply and circulation strategies are likely to be the primary beneficiaries of this growth.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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