Ethena’s USDe has become the third-largest stablecoin, surpassing DAI and USDS

Ethena’s synthetic stablecoin USDe has vaulted into the top tier of the digital dollar market, overtaking DAI and USDS to claim the third spot by market capitalization in the stablecoin ladder. 
The rise in adoption, coupled with progress on governance milestones, has brought Ethena’s long-anticipated “fee switch” closer to reality, as this will allow ENA token holders to share in protocol revenues for the first time.
USDe’s circulating supply rose by about 42% in roughly one month, taking its market capitalization to over $12.4 billion. This surge allowed it to climb to third position in the stablecoin market, coming in behind only Tether’s USDT and Circle’s USDC in terms of size.
USDe circulating supply. Source: Defillama
Ethena’s fee switch milestone is within reach
Ethena Labs’ ENA “fee switch” proposal was approved in November 2024, which will allow it to redistribute a portion of the protocol’s revenue stream to ENA token holders.
However, it listed three milestones that it had to achieve before the process of redistributing revenue with holders could begin. Those milestones were:

Surpassing $6 billion in USDe supply.
The second is having a cumulative protocol revenue of at least $250 million
The third milestone was to secure listings for USDe on four of the top five centralized exchanges ranked by derivatives trading volume.<